The decision to abolish planting rights system by 2015 at the latest has generated much debate among EU Member States and the EU Commission. Opponents claim that abolishing planting rights will have several negative effects, such as an increase in production and a decrease in the prices. On the other side the reform supporters, argue that it will benefit the sector and enhance its competitiveness. In times where the Common Agricultural Policy is being discussed, the liberalization of planting rights seems to be justifying more a political objective rather than a market objective. This paper simulates the effects of liberalization on wine prices, production and land values in the Chianti Classico wine denomination using the Nerlove’s approach (1956-1958). The work also investigates the IGT quota production within the area that could become Chianti Classico wine after the liberalization. In summary, as any economic reform, abolishing planting rights is likely to create both winners and losers – which itself implies the desirability for compensations during a transition process. The magnitude of these effects is likely to differ strongly if the EU decides to leave the control to MS, Interbranch Organisation and Consortium board or not. In particular, the effects will depend on (1) how restrictive policy measure to control the production shall be taken by the Consortium; (2) how easy it will expand IGT vineyards in Chianti Classico with the “protectionism policies”; (3) how the wine producers could be control the bulk wine prices.

I diritti di reimpianto e l'ipotesi di liberalizzazione: un tentativo di analisi nell'area Chianti Classico di un discusso strumento di Politica Agraria - Replanting Right and Liberalizations: an Attempt to Analyze a Controversial Instrument of Agricultural Policy in the Chianti Classico area

GAETA, Davide Nicola Vincenzo;
2013-01-01

Abstract

The decision to abolish planting rights system by 2015 at the latest has generated much debate among EU Member States and the EU Commission. Opponents claim that abolishing planting rights will have several negative effects, such as an increase in production and a decrease in the prices. On the other side the reform supporters, argue that it will benefit the sector and enhance its competitiveness. In times where the Common Agricultural Policy is being discussed, the liberalization of planting rights seems to be justifying more a political objective rather than a market objective. This paper simulates the effects of liberalization on wine prices, production and land values in the Chianti Classico wine denomination using the Nerlove’s approach (1956-1958). The work also investigates the IGT quota production within the area that could become Chianti Classico wine after the liberalization. In summary, as any economic reform, abolishing planting rights is likely to create both winners and losers – which itself implies the desirability for compensations during a transition process. The magnitude of these effects is likely to differ strongly if the EU decides to leave the control to MS, Interbranch Organisation and Consortium board or not. In particular, the effects will depend on (1) how restrictive policy measure to control the production shall be taken by the Consortium; (2) how easy it will expand IGT vineyards in Chianti Classico with the “protectionism policies”; (3) how the wine producers could be control the bulk wine prices.
2013
9788875876906
Chianti classico; CMO wine; Planting rights
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11562/692560
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