Volume 141, December 2015, Pages 48–57
Highlights
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- The study focuses on the importance of local and spatial effects.
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- The Moldavian wine region (Romania) is considered as a case study.
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- Farms and environmental constraints limit profitability in the south Moldavia.
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- Vineyards close to urban centres experience higher profitability.
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- Results show that the Moldavian wine industry will benefit from climate change.
Abstract
This
article proposes a micro-econometric approach to assess climate change
impacts on wine industry performance in the Moldavia region of Romania.
In the assessment we consider the spatial variability of wine-growing
micro-areas and employ a small scale for the analysis. Results show that
vineyard revenue is influenced by a local effect. Spatial differences
among municipalities are highlighted and are driven by vineyard
locations and distance from urban areas. Differences at the local scale
reflect the presence of structural and environmental constraints.
Findings demonstrate that climate change impacts vary significantly
among simulated scenarios. The simulated increase in temperature should
compensate for the negative effect caused by rainfall changes. Results
also suggest that winegrowers should benefit from climate change,
although this will depend on the vineyard's location. Potential policy
measures designed to remove local constraints and to capitalise on the
positive effects of climate change are discussed.
Keywords
- Climate change impacts;
- Moldavia (Romania);
- Spatial micro-econometric approach;
- Wine industry
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