Original Research Article
The Impact of Changes in Regulatory and Market Environment on Sustainability of Wine Producers: A Structural Equation Model
Published 2020-05-13
Keywords
- Sustainability,
- Wine,
- Structural Equation Model
How to Cite
Obi, C., Vergamini, D. ., Bartolini, F. ., & Brunori, G. . (2020). The Impact of Changes in Regulatory and Market Environment on Sustainability of Wine Producers: A Structural Equation Model. Wine Economics and Policy, 9(1), 51–61. https://doi.org/10.36253/web-7689
Funding data
-
Horizon 2020
Grant numbers 635577
Abstract
We explore the farmers’ perception of how different external drivers of changes in farming activities could lead to sustainability practices among wine producers. The general assumption is that regulatory and market forces can change the production strategies of wine producers, which could eventually lead to the adoption of sustainability practices. We presented the percentage sustainability practice (PSP) as a novel way of measuring sustainability. We developed a structural equation model (SEM) with 13 hypotheses to test our assumption for the wine supply chain in Tuscany (Italy). Among the market forces, we found that wine growers perceived access to credit to have a significant positive association with sustainability practices. We also found that the perception of change in regulatory instruments such as environmental regulation and Common Agriculture Policy can lead to sustainable practice if they improve access to credit. Our research provides evidence for medium-large scale wine producers, emphasising their role as carriers of innovation in the movement towards sustainable wine production.
References
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Casas-Cazares, R., Gonzalez-Cossio, F. V., Martinez-Saldana, T., Garcia-Moya, E., & Pena-Olvera, B. V. (2009). Sustainability and the Strategy Used in Smallholding Farming Agroecosystems in Oaxaca Valles Centrales. Agrociencia, 43(3), 319–331. https://doi.org/Article
Cortignani, R., & Dono, G. (2015). Simulation of the impact of greening measures in an agricultural area of southern Italy. Land Use Policy, 48, 525–533. https://doi.org/10.1016/j.landusepol.2015.06.028
Dessart, F. J., Barreiro-Hurlé, J., & van Bavel, R. (2019). Behavioural factors affecting the adoption of sustainable farming practices: a policy-oriented review. European Review of Agricultural Economics, 46(3), 417-471.
Dodds, R., Graci, S., Ko, S., & Walker, L. (2013). What drives environmental sustainability in the New Zealand wine industry?: An examination of driving factors and practices. International Journal of Wine Business Research, 25(3), 164–184. https://doi.org/10.1108/IJWBR-2012-0015
Flores, S. S. (2018). What is sustainability in the wine world? A cross-country analysis of wine sustainability frameworks. Journal of Cleaner Production, 172, 2301–2312. https://doi.org/10.1016/j.jclepro.2017.11.181
Fraga, H., Malheiro, A. C., Moutinho-Pereira, J., & Santos, J. A. (2012). An overview of climate change impacts on European viticulture. Food and Energy Security. https://doi.org/10.1002/fes3.14
Gabzdylova, B., Raffensperger, J. F., & Castka, P. (2009). Sustainability in the New Zealand wine industry: drivers, stakeholders and practices. Journal of Cleaner Production, 17(11), 992–998. https://doi.org/10.1016/j.jclepro.2009.02.015
Gaeta, D., & Corsinovi, P. (2013). Economics, governance, and politics in the wine market: European Union Developments. Economics, Governance, and Politics in the Wine Market: European Union Developments. New York: Palgrave Macmillan US. https://doi.org/10.1057/9781137395320
Gilinsky, A., Newton, S. K., & Vega, R. F. (2016). Sustainability in the Global Wine Industry: Concepts and Cases. Agriculture and Agricultural Science Procedia, 8, 37–49. https://doi.org/10.1016/j.aaspro.2016.02.006
Goodhue, R. E., Heien, D. M., Lee, H., & Sumner, D. A. (2004). Contracts and quality in the California winegrape industry. Review of Industrial Organization, 23(3–4), 267–282. https://doi.org/10.1023/B:REIO.0000031371.03322.9e
Hayati, D. (2017). A Literature Review on Frameworks and Methods for Measuring and Monitoring Sustainable Agriculture. Technical Report n.22. Global Strategy Technical Report. Rome. Retrieved from http://gsars.org/wp-content/uploads/2017/03/TR-27.03.2017-A-Literature-Review-on-Frameworks-and-Methods-for-Measurin....pdf
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Merli, R., Preziosi, S. experiences in the wine sector: toward the development of an international indicators system M., & Acampora, A. (2018). Sustainability experiences in the wine sector: toward the development of an international indicators system. Journal of Cleaner Production, 172, 3791–3805. https://doi.org/10.1016/j.jclepro.2017.06.129
OIV. (2016). General principles of sustainable vitiviniculture - environmental - social - economic and cultural aspects. Retrieved November 12, 2019, from http://www.oiv.int/public/medias/5766/oiv-cst-518-2016-en.pdf
Pomarici, E., Amato, M., & Vecchio, R. (2016). Environmental Friendly Wines: A Consumer Segmentation Study. Agriculture and Agricultural Science Procedia, 8, 534–541. https://doi.org/10.1016/j.aaspro.2016.02.067
Pomarici, E., & Vecchio, R. (2014). Millennial generation attitudes to sustainable wine: An exploratory study on Italian consumers. Journal of Cleaner Production, 66, 537–545. https://doi.org/10.1016/j.jclepro.2013.10.058
Pullman, M. E., Maloni, M. J., & Dillard, J. (2010). Sustainability practices in food supply chains: How is wine different? Journal of Wine Research, 21(1), 35–56. https://doi.org/10.1080/09571264.2010.495853
Rocchi, B., & Gabbai, M. (2013). Territorial identity as a competitive advantage in wine marketing: a case study. Journal of Wine Research, 24(4), 291–310. https://doi.org/10.1080/09571264.2013.837382
Rossi, L., Gancheva, M., & O’Brien, S. (2017). Financing climate action: opportunities and challenges for local and regional authorities. European Committee of the Regions (Vol. QG-01-17-9). https://doi.org/10.2863/329600
Santiago, M., & Sykuta, M. E. (2016). Regulation and Contract Choice in the Distribution of Wine. Journal OfWine Economics, 11(2), 216–232. https://doi.org/10.1017/jwe.2015.34
Santini, C., Cavicchi, A., & Casini, L. (2013). Sustainability in the wine industry: key questions and research trends. Agriculture and Food Economics, 1(9), 1–14.
Schmit, T. M., Rickard, B. J., & Taber, J. (2013). Consumer valuation of environmentally friendly production practices in wines, considering asymmetric information and sensory effects. Journal of Agricultural Economics, 64(2), 483–504. https://doi.org/10.1111/1477-9552.12001
Schreiber, J. B., Stage, F. K., King, J., Nora, A., & Barlow, E. A. (2006). Reporting structural equation modelling and confirmatory factor analysis results: A review. Journal of Educational Research. https://doi.org/10.3200/JOER.99.6.323-338
Sogari, G., Mora, C., & Menozzi, D. (2016). Factors driving sustainable choice: the case of wine. British Food Journal, 118(3), 632–646. https://doi.org/10.1108/BFJ-04-2015-0131
Streiner, D. (2005). Research Methods in Psychiatry. Finding Our Way: An Introduction to Path Analysis. The Canadian Journal Psychology, 50(2), 115–122. https://doi.org/10.1177/070674370505000207
Szolnoki, G. (2013). A cross-national comparison of sustainability in the wine industry. Journal of Cleaner Production, 53, 243–251. https://doi.org/10.1016/j.jclepro.2013.03.045
Vergamini, D., Bartolini, F., Prosperi, P., & Brunori, G. (2019). Explaining regional dynamics of marketing strategies: The experience of the Tuscan wine producers. Journal of Rural Studies, 72, 136-152.
Zahm, F., Viaux, P., Vilain, L., Girardin, P., & Mouchet, C. (2008). Assessing farm sustainability with the IDEA method - From the concept of agriculture sustainability to case studies on farms. Sustainable Development, 16(4), 271–281. https://doi.org/10.1002/sd.380
Ashton, R. H. (2014). Wine as an Experience Good: Price Versus Enjoyment in Blind Tastings of Expensive and Inexpensive Wines. Journal of Wine Economics, 9(02), 171–182. https://doi.org/10.1017/jwe.2014.7
Bartolini, F., Vergamini, D. (2019) Understanding the spatial agglomeration of participation in agri-environmental schemes: The case of the Tuscany Region. Sustainability 11(10), art. no. 2753 https://doi.org/10.3390/su11102753
Bianchi, C. (2015). Consumer Brand Loyalty in the Chilean Wine Industry. Journal of Food Products Marketing, 21(4), 442–460. https://doi.org/10.1080/10454446.2014.885859
Casas-Cazares, R., Gonzalez-Cossio, F. V., Martinez-Saldana, T., Garcia-Moya, E., & Pena-Olvera, B. V. (2009). Sustainability and the Strategy Used in Smallholding Farming Agroecosystems in Oaxaca Valles Centrales. Agrociencia, 43(3), 319–331. https://doi.org/Article
Cortignani, R., & Dono, G. (2015). Simulation of the impact of greening measures in an agricultural area of southern Italy. Land Use Policy, 48, 525–533. https://doi.org/10.1016/j.landusepol.2015.06.028
Dessart, F. J., Barreiro-Hurlé, J., & van Bavel, R. (2019). Behavioural factors affecting the adoption of sustainable farming practices: a policy-oriented review. European Review of Agricultural Economics, 46(3), 417-471.
Dodds, R., Graci, S., Ko, S., & Walker, L. (2013). What drives environmental sustainability in the New Zealand wine industry?: An examination of driving factors and practices. International Journal of Wine Business Research, 25(3), 164–184. https://doi.org/10.1108/IJWBR-2012-0015
Flores, S. S. (2018). What is sustainability in the wine world? A cross-country analysis of wine sustainability frameworks. Journal of Cleaner Production, 172, 2301–2312. https://doi.org/10.1016/j.jclepro.2017.11.181
Fraga, H., Malheiro, A. C., Moutinho-Pereira, J., & Santos, J. A. (2012). An overview of climate change impacts on European viticulture. Food and Energy Security. https://doi.org/10.1002/fes3.14
Gabzdylova, B., Raffensperger, J. F., & Castka, P. (2009). Sustainability in the New Zealand wine industry: drivers, stakeholders and practices. Journal of Cleaner Production, 17(11), 992–998. https://doi.org/10.1016/j.jclepro.2009.02.015
Gaeta, D., & Corsinovi, P. (2013). Economics, governance, and politics in the wine market: European Union Developments. Economics, Governance, and Politics in the Wine Market: European Union Developments. New York: Palgrave Macmillan US. https://doi.org/10.1057/9781137395320
Gilinsky, A., Newton, S. K., & Vega, R. F. (2016). Sustainability in the Global Wine Industry: Concepts and Cases. Agriculture and Agricultural Science Procedia, 8, 37–49. https://doi.org/10.1016/j.aaspro.2016.02.006
Goodhue, R. E., Heien, D. M., Lee, H., & Sumner, D. A. (2004). Contracts and quality in the California winegrape industry. Review of Industrial Organization, 23(3–4), 267–282. https://doi.org/10.1023/B:REIO.0000031371.03322.9e
Hayati, D. (2017). A Literature Review on Frameworks and Methods for Measuring and Monitoring Sustainable Agriculture. Technical Report n.22. Global Strategy Technical Report. Rome. Retrieved from http://gsars.org/wp-content/uploads/2017/03/TR-27.03.2017-A-Literature-Review-on-Frameworks-and-Methods-for-Measurin....pdf
Hox, J., & Bechger, T. (1999). An introduction to structural equation modelling. In Family Science Review (Vol. 11, pp. 354–373). https://doi.org/10.3233/978-1-61499-538-8-3
Joshi, Y., & Rahman, Z. (2015). Factors Affecting Green Purchase Behaviour and Future Research Directions. International Strategic Management Review, 3(1–2), 128–143. https://doi.org/10.1016/j.ism.2015.04.001
Kertész & Madarász, B. (2014). Conservation Agriculture in Europe. International Soil and Water Conservation Research, 2(1), 91–96. https://doi.org/10.1016/S2095-6339(15)30016-2
Malorgio, G., & Grazia, C. (2007). Quantity and quality regulation in the wine sector: The Chianti Classico appellation of origin. International Journal of Wine Business Research, 19(4), 298–310. https://doi.org/10.1108/17511060710837436
Merino, M. F. (2012). The EU Agricultural Policy – Delivering on Adaptation to Climate Change. In Building resilience for adaptation to climate change in the agriculture sector: Proceedings of a Joint FAO/OECD Workshop 23–24 April 2012. (pp. 333–336). Retrieved from http://www.fao.org/docrep/017/i3084e/i3084e23.pdf
Merli, R., Preziosi, S. experiences in the wine sector: toward the development of an international indicators system M., & Acampora, A. (2018). Sustainability experiences in the wine sector: toward the development of an international indicators system. Journal of Cleaner Production, 172, 3791–3805. https://doi.org/10.1016/j.jclepro.2017.06.129
OIV. (2016). General principles of sustainable vitiviniculture - environmental - social - economic and cultural aspects. Retrieved November 12, 2019, from http://www.oiv.int/public/medias/5766/oiv-cst-518-2016-en.pdf
Pomarici, E., Amato, M., & Vecchio, R. (2016). Environmental Friendly Wines: A Consumer Segmentation Study. Agriculture and Agricultural Science Procedia, 8, 534–541. https://doi.org/10.1016/j.aaspro.2016.02.067
Pomarici, E., & Vecchio, R. (2014). Millennial generation attitudes to sustainable wine: An exploratory study on Italian consumers. Journal of Cleaner Production, 66, 537–545. https://doi.org/10.1016/j.jclepro.2013.10.058
Pullman, M. E., Maloni, M. J., & Dillard, J. (2010). Sustainability practices in food supply chains: How is wine different? Journal of Wine Research, 21(1), 35–56. https://doi.org/10.1080/09571264.2010.495853
Rocchi, B., & Gabbai, M. (2013). Territorial identity as a competitive advantage in wine marketing: a case study. Journal of Wine Research, 24(4), 291–310. https://doi.org/10.1080/09571264.2013.837382
Rossi, L., Gancheva, M., & O’Brien, S. (2017). Financing climate action: opportunities and challenges for local and regional authorities. European Committee of the Regions (Vol. QG-01-17-9). https://doi.org/10.2863/329600
Santiago, M., & Sykuta, M. E. (2016). Regulation and Contract Choice in the Distribution of Wine. Journal OfWine Economics, 11(2), 216–232. https://doi.org/10.1017/jwe.2015.34
Santini, C., Cavicchi, A., & Casini, L. (2013). Sustainability in the wine industry: key questions and research trends. Agriculture and Food Economics, 1(9), 1–14.
Schmit, T. M., Rickard, B. J., & Taber, J. (2013). Consumer valuation of environmentally friendly production practices in wines, considering asymmetric information and sensory effects. Journal of Agricultural Economics, 64(2), 483–504. https://doi.org/10.1111/1477-9552.12001
Schreiber, J. B., Stage, F. K., King, J., Nora, A., & Barlow, E. A. (2006). Reporting structural equation modelling and confirmatory factor analysis results: A review. Journal of Educational Research. https://doi.org/10.3200/JOER.99.6.323-338
Sogari, G., Mora, C., & Menozzi, D. (2016). Factors driving sustainable choice: the case of wine. British Food Journal, 118(3), 632–646. https://doi.org/10.1108/BFJ-04-2015-0131
Streiner, D. (2005). Research Methods in Psychiatry. Finding Our Way: An Introduction to Path Analysis. The Canadian Journal Psychology, 50(2), 115–122. https://doi.org/10.1177/070674370505000207
Szolnoki, G. (2013). A cross-national comparison of sustainability in the wine industry. Journal of Cleaner Production, 53, 243–251. https://doi.org/10.1016/j.jclepro.2013.03.045
Vergamini, D., Bartolini, F., Prosperi, P., & Brunori, G. (2019). Explaining regional dynamics of marketing strategies: The experience of the Tuscan wine producers. Journal of Rural Studies, 72, 136-152.
Zahm, F., Viaux, P., Vilain, L., Girardin, P., & Mouchet, C. (2008). Assessing farm sustainability with the IDEA method - From the concept of agriculture sustainability to case studies on farms. Sustainable Development, 16(4), 271–281. https://doi.org/10.1002/sd.380