The effect of geographical denomination on the uptake of fungus-resistant grapes

Abstract

Grape production for wine making is of great economic and cultural importance in Europe, but is heavily dependent on pesticides. Reducing pesticide use and associated risks is a policy goal in several countries, particularly in Europe. The most effective strategy to substantially reduce pesticide use in grape production is the planting of fungus-resistant varieties, which are less susceptible to common fungal infections and thus allow a massive reduction in pesticide treatments. However, their use remains low. One possible reason may be that planting new varieties may conflict with policies supporting geographical denomination systems, which tend to focus on traditional varieties. We provide the first study of how geographical denomination systems directly affect the adoption of fungus-resistant varieties. Using a novel and uniquely detailed dataset of 54,483 variety-level observations from 381 vineyards in Switzerland, we find that fungus-resistant grape varieties are 2% more likely to be adopted by growers if they can be sold under geographical denominations. Thus, expanding the eligibility of fungus-resistant varieties in geographical denomination lists could be a straightforward policy measure to stimulate their adoption. However, the effects are small, so complementary policies are needed.