Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/74855 
Year of Publication: 
2013
Series/Report no.: 
LICOS Discussion Paper No. 325
Publisher: 
Katholieke Universiteit Leuven, LICOS Centre for Institutions and Economic Performance, Leuven
Abstract: 
Almost half of the world's vineyards are in the EU and the EU produces around 60% of the world's wine. The EU is also the world's most regulated wine market. In 2007, the European Union decided on a major refirm of its wine policy, the so-called Common Market Organization (CMO) for wine. A crucial element was the abolishment of a system of planting rights to regulate planting of vineyards in the EU. However, before its implementation opponents of the liberalization of planting rights are lobbying EU governments to reverse the decision. Our paper provides the first theoretical analysis of the economic effects and the welfare implications of planting rights. Our model integrates the markets for land, planting rights and wine to analyze the efficiency and distributional effects. We analyze the impact of enforcement problems, trade restrictions, and the use of government reserves in the planting rights system.
Subjects: 
planting rights
wine
Common Agricultural Policy
Common Market Organization
policy analysis
JEL: 
Q18
Document Type: 
Working Paper

Files in This Item:
File
Size
967.55 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.