Abstract
In this paper, we analyse the impact of spring temperature (ST) and soil water (SW) on wine production volume (WPV) for the period 1933 to 2013 in the Douro region. We employ a state-space regression model to capture possible structural changes in wine production caused by a change in ST and/or SW. We find that the ST explains about 65 % of the variability of WPV. In contrast, the summer SW level increases the Radj-square to 83 % and the Akaike criterion value was lower. We also find interesting dynamic properties of SW and ST. The immediate impact of an increase in SW is negative for WPV, while the SW that is in the ground, i.e. from the previous 2 and 3 years, have a positive effect on actual WPV. Moreover, the individual changes of ST and SW have similar dynamic impact on WPV. Our main finding is that climate change does not only change the variables in question but also the winegrape vineyards adding to the negative impact on WPV levels. As a result we observe a shift of the relative importance away from ST to SW.
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