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Journal of Wine Economics· 2026Q1

When smoke signals economic loss: How wildfires harm Oregon wineries

Amod Sugiyama, James A. Sterns

Short summary

A one-standard-deviation increase in wildfire smoke (PM2.5) in Oregon during September 2020 correlated with a 15%-23% drop in retail wine sales volume over the subsequent three years, particularly affecting Pinot Noir and Pinot Grigio.

AI-generated from the title and abstract; the full text is not read.

Key points

  • A one-standard-deviation increase in September 2020 PM2.5 was associated with a 15%-23% decline in Oregon winery retail sales volume over three years.
  • The economic impact of smoke exposure was most significant for Pinot Noir and Pinot Grigio varietals.
  • Wildfire smoke directly reduced tasting room visits and on-site revenue in the month following smoke events.
  • The study highlights multiple economic channels through which wildfire smoke damages wine producers.

AI-generated from the title and abstract; the full text is not read.

Abstract

Abstract Wildfire smoke poses a growing threat to wine-producing regions, yet its economic consequences remain less understood. We study the 2020 Oregon wildfire season and estimate its impacts on retail wine sales, prices, and tasting room operations. Exploiting cross-sectional variation in smoke exposure across winery locations, we estimate that a one-standard-deviation increase in September PM 2.5 ${_{2.5}}$ 2.5 is associated with retail sales volume declines of 15%–23% over the following three years, though the year-by-year estimates are imprecise and reach conventional significance levels only in 2023. Effects are the most prominent in Pinot Noir and Pinot Grigio, Oregon's dominant varietals. Smoke also directly reduces tasting room visits and on-site revenue in the month following a smoke event. Our results highlight how wildfire smoke damages wine producers through multiple distinct economic channels and highlight the growing financial exposure of the Oregon wine industry to wildfire events.

The authors' abstract, as published at the source. Journal of Wine Economics, 2026 · DOI ↗

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