Using a Hedonic Model of Solar Radiation to Assess the Economic Effect of Climate Change: The Case of Mosel Valley Vineyards

In this paper we provide a simple, credible method for assessing the effects of climate change on the quality of agricultural land and then apply this method using a rich set of data on the vineyards of the Mosel Valley in Germany. The basic idea is to use a simple model of solar radiation to measure the amount of energy collected by a vineyard, and then to establish the econometric relation between energy and vineyard quality. Coupling this hedonic function with the elementary physics of heat and energy permits a straightforward calculation of the impact of any climate change on vineyard quality (and prices). We show that the variability in vineyard quality in this region is due primarily to the extent to which each vineyard is able to capture radiant solar energy, so that these data provide a particularly credible “experiment” for identifying and measuring the appropriate hedonic equation. Our empirical results indicate that the vineyards of the Mosel Valley will increase in value under a scenario of global warming, and perhaps by a considerable amount. Vineyard and grape prices increase more than proportionally with greater ripeness, so that we estimate a 3°C increase in temperature would more than double the value of this vineyard area, while a 1°C increase would increase prices by about 20 percent.

Nulltarife im öffentlichen Personennahverkehr - ein Paradigmenwechsel?

In jüngerer Zeit sind in einigen europäischen Städten Nulltarife im Öffentlichen Personennahverkehr eingeführt worden. Zu welchen Ergebnissen führte diese Maßnahme? Konnten damit Pkw-Fahrer zu einem Umstieg auf den umweltfreundlichen ÖPNV bewegt und die Externaiitäten des Pkw-Verkehrs ursachenadäquat beseitigt werden? --

Measuring the Economic Effect of Global Warming on Viticulture Using Auction, Retail, and Wholesale Prices

In this paper we measure the effect of year to year changes in the weather on wine prices and winery revenue in the Mosel Valley in Germany in order to determine the effect that climate change is likely to have on the income of wine growers. A novel aspect of our analysis is that we compare the estimates based on auction, retail, and wholesale prices. Although auction prices are based on actual transactions, they provide a thick market only for high quality, expensive wines and may overestimate climate’s effect on farmer revenues. Wholesale prices, on the other hand, do provide broad coverage of all wines sold and probably come closest to representing the revenues of farmers. Overall, we estimate a 1°C increase in temperature would yield an increase in farmer revenue of about 30 percent.

Assisting Mid-Atlantic Wine Industry Stakeholders in Developing Consumer-Centric Marketing Strategies: Internet Survey Results

Two Internet surveys were administered to wine consumers in New Jersey, New York, and Pennsylvania. Purchasing frequencies, consumption occasions, and sources used to learn about wine were documented. National data are readily available; however, the study discussed in this article focused on Mid-Atlantic consumers, whose behaviors and attitudes were not well understood. These data provide Extension personnel in the region with the ability to better inform industry members about their clientele and help them develop marketing strategies that appeal to local wine drinkers

Externalities by Automobiles and Fare-Free Transit in Germany — A Paradigm Shift?

To mitigate automobile-caused externalities, several European cities have introduced fare-free transit schemes. Best known are the plans introduced in Hasselt, Belgium, and Templin, Germany. The staggering increases in ridership in both cities seem to prove the overwhelming success of this policy. In addition, a study carried out for the German Federal Ministry of Transportation scrutinized the program in Templin and found that a positive net effect is likely and fare-free transit is a viable policy to curb automobile externalities. Fare-free schemes are based on the economic theory of the second-best. Automobile users should be encouraged to shift to environmentally friendly transit. An undesired side effect, however, may be the increase in the demand by former transit users and the attraction of pedestrians and bicycle riders. In Templin, the side effect was prevailing, whereas the shift from automobile to transit was only minimal. The positive net benefit was due to the reduction in fatalities and casualties: Since pedestrians and bicycle riders belong to the most endangered road users, every decrease in these modes will lead to a reduction of automobile-caused costs. The undesired side effect thus became the main effect

The impact of the wine industry on hotels and restaurants in Walla Walla

Walla Walla enjoys the fastest growing wine industry in the State of Washington, if not in the whole U.S. This paper examines the impact of this extraordinary growth on the revenue of regional hotels and restaurants. Employing a dynamic quarterly panel model at the county level we show that the regional reputation as high quality wine county, as expressed by critical wine points in the national wine press, has a significant effect on the tourism industry. Less than 17% of all restaurant and approximately 40% of all hotel revenue is tied to the wine cluster (2007). However, regional reputation is short-living and needs to be constantly re-earned