What’s behind the price? Linking quality, cultural heritage and market value in Italian PDO and PGI olive oils

This thesis explores how product characteristics and official certifications are reflected in the pricing and market behavior of Italian olive oils in wholesale markets. The analysis focuses on Italian PDO (Protected Designation of Origin) and PGI (Protected Geographical Indication) olive oils, comparing nine PDOs with corresponding non-certified extra virgin olive oils (EVOO) in their local markets. In addition, two further PDOs that lack comparable generic EVOO price series are included in the analysis of PDO price levels and specification restrictiveness, but not in the PDO and EVOO premium comparison. Two main datasets are combined. The first is a structured database of product specifications from eAmbrosia, covering product identity, production rules, quality parameters and cultural and territorial links. The second consists of monthly wholesale prices from the ISMEA Mercati portal for selected Italian markets between 2015 and 2025. Nominal prices are deflated using the ISTAT consumer price index and an ISMEA olive oil price index to separate general inflation from sector trends. Based on the specifications, a restriction index is constructed to summarize the strictness of production and quality rules for each PDO. The empirical analysis describes price dynamics, estimates absolute and percentage price premiums of PDO/PGI oils over generic EVOO, and measures price volatility. Finally, it explores correlations between specification restrictiveness, average prices, premiums and volatility. Results show that PDO/PGI olive oils generally obtain positive price premiums and, in most markets, exhibit lower price volatility than generic EVOO. However, premiums are heterogeneous across regions and tend to narrow in the most recent years of strong price increases. More restrictive product specifications are strongly associated with higher average PDO prices, but only weakly related to price premiums and volatility. Overall, the study contributes to a better understanding of how product specification, origin and cultural heritage are reflected in Italian olive oil prices.