Severe frosts can lead to substantial economic losses for vineyards due to reduced grape production and potential long-term damage to the vines.
Others plan proactively and plant vineyards on slopes or in locations less prone to frost accumulation, or they delay pruning to postpone bud break until after the risk of frost has decreased.
This effect has a direct and clear benefit for the winemakers who have a safeguard against the risk of frost on their vines and the financial viability of their entire enterprise.
This unexpected benefit is a prime example of what economists call an externality; a byproduct of a company's operations.
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