The Effect of Global Warming on the Napa Valley, California Wine Economy

The winery industry can be categorized into red and white wine segments. The red wine segment, measured by tonnage of varietals crushed, has grown at a compounded annual rate of 4.7% for 10 years from 1989 to 1998, and a year over year growth rate of 8.2% from 1998 to 1999. Judging by the strong growth rate experienced in the red wine segment, it is reasonable to conclude that the red wine segment is in the growth phase of the life cycle model. In addition, production of red wine varietals which are relatively unknown such as syrah and sangiovese nearly doubled in a year from 1998 to 1999. The white wine segment, however, is at the mature phase of its life cycle as the segment shrunk slightly by 0.42% from 1998 to 1999. Overall, the industry is still at the growth stage lead by growth in the red wine segment.

It depends on what types of products one plans to produce using the land. Since the winery business requires high investment in real property, it is important for one to make an investment decision on what market segment it wants to play in. Napa Valley is widely known as a good place for staring a vineyard and the land price is relatively higher than anywhere else in the US. The initial investment would affect the cost structure, which eventually drives up the price of wine. For example, budget wine consumption is very price sensitive and some competitors are trying to maintain their competitiveness with a lower price. If a company decides to produce wines from the winery in Napa Valley, soon, it would be forced to put a premium on the wine price to maintain a level of margin and ,eventually, the company would lose its competitive edge if it is a price player.

The drought is not a result of Global warming because the California drought is caused by a lack of Pacific subtropical storms and the Nina ocean current pattern. However, Global warming does make California’s drought more severe in effect due to the rise of temperature which only contributes to hotter days resulting in more inland water evaporating into the atmosphere. As global warming persist and increases California’s current or future droughts will only become more severe. The implications Globe warming causes in just one state’s drought should be a realization of what global warming can cause in areas of drought at a larger

I.) Water and Drought in California: Facts and data show that the weather we are experiencing here in California is that there is a difference between La Niña that brings the ocean temperature down and making them cooler and El Niño brings much warmer ocean temperatures. Currently california is experiencing a weakened La Niña. With a 55% chance of this weather continuing for the next 3 months. La Niña affect patterns of rainfall, atmospheric pressure, and global atmospheric circulation. Even though California is in a severe drought, with coordination, modernization, and compromise, California should be able to provide enough water for a growing population and growing economy.

Wine production involves two parts of economic activity – viticulture and wine making in the winery. In the global context, wine production is dynamic due to the influence of globalization, technological advancements and extensive research. These have essentially influenced the nature, spatial patterns and the ecological dimensions of the wine industry.

California state and some other west regions face the problem of severe drought and the researchers show several reasons to explain this phenomena. According to research in weather data for the past century, in terms of overall precipitation and spring snowpack, the past three years are not record-breakers and paleoclimate studies show that the current drought is not exceptional given the natural variations in precipitation of the past seven centuries. It cannot thoroughly attribute drought to global warming. California may be faced a future of “perfect drought” because of following reasons. Rising heat increases the evaporation, continuing depletion of ground water, and growing water shortages on the Colorado River [1]. It is predictable

The California Drought is one of the most catastrophic weather and climate related events in recent history. It has singlehandedly altered the geographic landscape of the state and brought down entire industries to a grinding halt. Not since global warming became a prominent fixture in the national spotlight has a climate issue so deeply challenged Californians to reconsider their lifestyles according to their climate conditions. This essay will examine the origins of climate change and the California Drought, how the two are related, the current state of California as a result of the drought, and the future outlook of California.

Do you think the San Francisco Bay would not be affected by climate change of global warming? The short answer is no. Scientists believe that in the future that the sea level of the San Francisco Bay will rise and flood several of the San Francisco Bay Area’s populated areas and landmarks such as the San Francisco and Oakland International Airport. How could we prevent or slow down the bay from taking over our landmarks and populated areas?

According to Dr. Denning, “as the global climate changes, average temperatures will rise sharply. Because Colorado is so far inland, this effect will be stronger because large bodies of water help mitigate temperature swings and Colorado is far from our oceans or Great Lakes. Imagine the climate of Albuquerque as far north as Greeley.” Additionally, we must consider the agriculture industry is estimated to be worth around forty-one billion dollars in Colorado, which means climate change will have a drastic impact on food production. Colorado’s geographic location is problematic in itself, but the continuous temperature changes means longer growing seasons. Ultimately, the rising temperatures make plants consume more water and it reduces the annual snowpack, which creates a conundrum of issues. Similarly, we can assume a warmer Colorado will also mean a much drier Colorado, which will hurt agriculture on every level.

Most of us consider drought as a period of dry and hot weather with too little or no rain, and while any or all of these conditions might be existent during drought, the definition of drought is more complex and subtle. According to the United States Geological Survey, California Water Science Center (as cited in Congressional Digest, 2015, p. 2):

From the end of the Second World War to the present day, California strengthened its area as a political, social, and cultural trendsetter. California is also extraordinary than most other states because of its diversity in the people and climate. California’s diverse topographical features such as, the rainfall, temperature and sunlight vary throughout the state. The seasons also vary in California changing the areas climate. Since the beginning of European settlement in California, climate has become increasingly important in shaping the state’s economy (Osborne, 6).

Because most greenhouse gases would remain in the atmosphere for a long period of time, the temperature of the earth will be continuously rising. If global heat-trapping emissions proceed at a medium to high rate, temperatures in California are expected to rise 4.7 to 10.5°F by the end of the century1. With the rise of temperature, the climate of California would also be changed. California has large area of forest and farmland, hundreds of miles of coastline, large amount of snowpack, and other natural wonders. And these special treasures of nature are especially at risk2. So it is very necessary to understand the strategies of California to combat climate change.

Climate change is a growing issue. I have found that this is an issue that can no longer be ignore. One area that is effected even more so than others is California. Specifically California’s water resources are becoming depleted due to climate change. This is not only an issue of the future but of the present. If this trend continues on its predicted path not only will California be effected but our whole nation. It should be a concerning issue to everyone and is not to be taken lightly.

People believe that global warming does not affect the cattle industry because you cannot see the impact as much as with other issues. An analysis was made between pastured beef production and feedlot beef production. It was determined that the production of pastured beef has a smaller climate impact than the production of feedlot beef. The amount that these ways change global warming are not large enough to make a huge impact and will not be able to keep climate warming under 2℃ (Climate Change: Beef Farming Brings On Warming 269). This is not something that you can see happening, but it is still impacting the climate change and how much carbon is being produced through the cattle

This industry has seen very limited growth since 1986. Based on Exhibit 4 (C-271, the total wine consumption in the US) and Exhibit 5 (C-271, per capita wine consumption in the US) the wine industry is in the maturity stage. It could