The Importance of Regional and Local Origin in the Choice of Wine: Hedonic Models of Portuguese Wines in Portugal

Having occupied a leading position as an export product, wine production and vine growing in Portugal are still highly relevant and deserve a dominant place in the Portuguese economic and social landscape. The objective of this work is to contribute to an analysis of the current state of development of Portuguese viticulture and viniculture, analysing the importance of regional origin in the composition of prices in the Portuguese market. Using a hedonic model and online data from a large retailer in Portugal, we are able to identify the regional premiums for Portuguese wines in the internal market. Furthermore, we assess AOC recognition and region-specific premiums, and we obtain evidence of differences in the price contribution of denomination of origin from different regions.