Climate changes and new productive dynamics in the global wine sector

Climate change has the potential to impact the agricultural sector and the wine sector in particular. The impacts of climate change are likely to differ across pro-ducing regions of wine. Future climate scenarios may push some regions into climatic regimes favourable to grape growing and wine production, with potential changes in areas planted with vines. We examine which is the linkage between climate change and productivity levels in the global wine sector. Within the framework of agricul- tural supply response, we assume that grapevines acreage and yield are a function of climate change. We find that grapevines yield suffers from higher temperatures dur- ing summer, whereas precipitations have a varying impact on grapevines depending on the cycle of grapevines. Differently, acreage share of grapevines tends to be favoured by higher annual temperatures, whereas greater annual precipitations tend to be det- rimental. The impacts vary between Old World Producers and New World Producers, also due to heterogeneity in climate between them.