We estimate the effect of weather conditions on wine quality (measured by tasting ratings) using panel data from a geographically homogeneous region in terms of soil and climate, but where both reds and whites are produced. We find that whites react to the weather very differently from reds; in particular, we identify a tradeoff between spring and summer temperatures. Moreover, substantial differences emerge even among individual grape varieties. The results allow for an assessment of the challenges faced by the wine industry in the context of global warming and suggest adaptation strategies based on substitution between grape varieties. • Climatic change can severely affect wine production. • Substitution between grape varieties can be a viable adaptation strategy. • We estimate econometric models of wine quality controlling for soil and producer effects. • We provide reliable evidence on the weather sensitivity of white and red grape varieties. • Tradeoffs emerge between varieties which winemakers can exploit to face climatic change.
Millo et al. (Thu,) studied this question.