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Syngenta Seeds’ Gary Wietgrefe points out several of the impediments to widespread adoption of HTF corn (Ed Zdrojewski in BioFuels Journal, 2003b). To begin with, starch and ethanol yield vary by geographic region and from year to year, making an optimizing hybrid choice difficult. Further, choosing a hybrid that maximizes ethanol qualities may mean a tradeoff with yield and other potentially valuable qualities, such as protein content and even test weight (because of moisture). Testing equipment pres- ents its own challenges. Not all units are calibrated the same, creating uncertainty. The technology may be less available to farmers than to ethanol plants, and even if it were to become. | AMERICAN ASSOCIATION OF WINE ECONOMISTS AAWE WORKING PAPER No. 2 Editor Victor Ginsburgh NATURAL ENDOWMENTS PRODUCTION TECHNOLOGIESAND THE QUALITY OF WINES IN BORDEAUX. IS IT POSSIBLE TO PRODUCE WINE ON PAVED ROADS Olivier Gergaud Victor Ginsburgh April 2007 www.wine-economics.org AAWE Working Paper No. 2 Natural endowments production technologies and the quality of wines in Bordeaux. Is it possible to produce wine on paved roads Olivier Gergaud OMI Université de Reims Champagne-Ardenne and TEAM Université de Paris I Victor Ginsburgh ECARES Université Libre de Bruxelles and CORE Université catholique de Louvain August 2005 Abstract We study whether quality assessments made by wine experts and by consumers based on prices obtained at auction between 1980 and 1992 can be explained by variables describing endowments land characteristics exposures of vineyards and technologies from grape varieties and picking to bottled wines . However since technological choices are likely to depend on endowments the effects can only be identified using an instrumental variables approach. We show that technological choices affect quality much more than natural endowments the effect of which is negligible. We are grateful to Orley Ashenfelter for his suggestion to rework on the Ginsburgh Monzak and Monzak 1994 paper as well as to Christophe Croux Marcelo Fernandez Abdul Noury Loic Sadoulet Peter Spencer Etienne Wasmer and especially Catherine Dehon for fruitful discussions on instrumental and less instrumental variables and for comments on a previous version. 1 1. Introduction Winemaking cannot be envisaged unless very specific weather conditions prevail. But this is obviously not sufficient since winemaking also involves a complex technology that needs natural endowments which can hardly be modified land slopes exposure other endowments summarized by what is often called terroir inputs that take 20 to 30 years before producing good quality outputs vines manual operations picking .
