Abstract Background and goals Winegrape growers are expected to continue to face significant risks due to extreme weather events in many regions. The objective of this research was to develop a framework for evaluating the economic impacts of different strategies to manage risks associated with extreme heat in winegrape production. Methods and key findings We developed a financial model to calculate the net present value of the flow of revenues and costs for establishing and producing winegrapes in California for selected risk management strategies. A survey was used to assess consumers’ willingness to accept wines that are produced in accordance with each management strategy. Overall, we found that in the presence of extreme heat events, economic returns to winegrape growers can improve with the selection of heat-tolerant cultivars and with the adoption of technologies designed to protect grapes from the sun. Conclusion and significance Our research outlines the economic consequences of climate change adaptation strategies and sheds new light on the relative merits of different approaches. We also offer a framework that winegrape growers can use to evaluate a wide range of potential outcomes across new technologies, cultivars, and regions.
Rickard et al. (Mon,) studied this question.