AAWE, Economics Dept, New York University, 19 W 4th St, 6Fl., New York NY 10012aawe@wine-economics.org

AAWE Working Paper No. 9

 

Red, White, and “Green”: the Cost of Carbon in the Global Wine Trade

Tyler Colman Pablo Päster

Abstract

Climate change is altering a wide range of human activities, including wine making. While wine may appear to be one of the most natural alcoholic beverages, it is not without carbon inputs and emissions, which contribute to the very change in climate that is altering both wine and wine making. In this paper, we use a carbon life cycle analysis to develop a model for quantifying carbon inputs in a bottle of wine. Current regulatory arrangements do not capture the carbon costs of wine effectively since most costs are externalized. We conclude with estimates of the cost of carbon under various regulatory regimes, which suggest how wine producers and consumers can reduce the carbon footprint of wine.

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