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JWE-Articles
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Journal of Wine Economics Volume 17 | 2022 | No. 2
»
The impact of hail on retail wine sales: Evidence from Switzerland

The impact of hail on retail wine sales: Evidence from Switzerland

Alexandre Mondoux
JEL Clasification: C14; C21; C33
Pages: 93–116
Full Text PDF
Abstract

This paper uses a difference-in-differences approach to analyze the treatment effect of a hail weather shock in a specific Swiss wine-growing region. We exploit a natural experi- ment from Switzerland’s Three Lakes wine region in 2013 and examine its impact on the country’s retail market. We find statistically significant (1%-level) effects of –22.8% and +2.8% for the volume and price of wine consumed, respectively. These effects can be inter- preted as average treatment effects, which is the difference in outcomes between treatment and control groups using a pre-post shock study methodology. Several robustness checks confirm the statistical significance of the estimated effects and the initial assumptions.

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