Economic Losses Due to Climatic Damage in Viticulture: Adaptation Proposals

In the wine production chain, climate change affects the yields and quality of the wine. Several studies have found that high temperatures have a significant impact on the value of wine production. In this context, adaptation measures represent a good practice to face the damage caused by negative climatic events. Since these practices have a cost, this study aims to provide an estimate of economic convenience for their adoption, using the methodology developed within the LIFE Adaptation in Agriculture project. In this paper, four measures used in winemaking processes and useful for reducing damage induced from climatic events were analyzed. The findings show that the adaptation measures considered in the wine sector usually have an initial investment cost of medium/high. Large farms, due to their size and resources, can opt for one or more measures with a greater ease of cost depreciation. Overall, the analysis shows that although the implementation of measures presents medium/high investment costs, it is always appropriate to assess the specific business case, even where the results indicate a lower degree of cost-effectiveness. When deciding on the adoption of measures, it should be kept in mind that costs depend not only on farm characteristics but also on the choice of implementation method and staff training and specific public subsidies.