Spatial structure of organic viticulture: evidence from Chianti (Italy)
New Medit, vol 16, n.2, (June 2017), pp. 55-63
Jel classification: Q12; D13; R12
Several studies have stressed the existence of agglomeration effects in organic farming. However, due to a different incentive framework, viticulture can be considered an exception in the light of this general evidence. Applying a spatial Durbin Bayesian probit model to census data for the area of production of Chianti Classico DOCG (Italy), no spatial relation in the farmer’s decision to convert to or maintain organic viticulture emerged and spatial spillovers have a marginal role in terms of affecting viticulturists’ behaviour. An explanation for this evidence is the existence of quasi-monopsonic power in output markets with strict production standards, which limits spatial agglomeration effects. Structural factors such as small-size farm, farmer education and younger age are the main direct determinants for predicting the likelihood of being involved in organic viticulture.
spatial econometrics, spatial Durbin Bayesian probit model, market power, wine