The Consumption of Alcoholic Beverages Can Be Reduced by Fiscal Means? Study on the Case of Romania

Ionel Bostan and Valentina Rusu
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Ionel Bostan: Faculty of Law and Administrative Sciences, Ștefan cel Mare University, Universitatii 13, 720229 Suceava, Romania

Sustainability, 2021, vol. 13, issue 14, 1-21

Abstract: World Health Organization gives great importance to excessive alcohol consumption among the population and its negative effects. It proposes a set of measures to reduce alcohol consumption and its harmful effects. The objective of our study was to estimate the effects of excise tax on alcohol in Romania, from two perspectives. On the one hand, we analyze the effects of alcohol excise on the consumption of alcoholic beverages among the Romanian population. We also consider the relationship between alcohol consumption and the incidence of diseases and deaths caused by it. On the other hand, we analyze the effects of the excise tax on alcohol on the state budget, through the revenues from the sales of alcohol. For achieving the main purpose of the paper, we analyze secondary data using both graphical and statistical methods. The statistical methods imply testing correlation between variables and also a regression model. The obtained results highlight the fact that the excise taxes on alcohol have not a significant effect on alcohol consumption among the population. At the same time, we observed that the revenues from excise taxes in alcohol at the state budget had an increasing trend. These results highlight the fact that the increase of excise duties for alcoholic beverages, in Romania, does not reduce their consumption. So, in order to limit the effects of this harmful habit of a certain part of the Romanian population, the decision-makers must take additional measures, the fiscal ones being relatively inefficient.

Keywords: alcoholic beverages; wrong diet/alcoholic abuse; alcohol related disease/deaths; price of alcohol; influencing consumption; taxes; state budget (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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