The predicted impact of the proposed alcohol production deregulation policy on consumption in Thailand

Sukampon Chongwilaikasaem, Eva Ayaragarnchanakul (), Chaleampong Kongcharoen, Chalermpat Pongajarn and Jürgen Rehm
Additional contact information
Sukampon Chongwilaikasaem: Prince of Songkla University
Eva Ayaragarnchanakul: Prince of Songkla University
Chaleampong Kongcharoen: Thammasat University
Chalermpat Pongajarn: Naresuan University
Jürgen Rehm: Centre for Addiction and Mental Health (CAMH)

International Journal of Health Economics and Management, 2025, vol. 25, issue 2, No 5, 292 pages

Abstract: Abstract Alcohol deregulation has recently been a topic of debate in Thailand, with policymakers weighing the potential economic benefits against public health harms and social concerns. This study estimates the impact on alcohol consumption levels in Thailand if barriers to producing alcoholic beverages are removed. Since the deregulation has not yet been implemented, we employed a randomized survey design for a Volumetric Choice Experiment administered to 1220 individuals, both drinkers and non-drinkers. The “treatment” group (with deregulation) was compared to the “control” group (without deregulation). While respondents in the control group were presented with existing drinks supplied by large producers, respondents in the treatment group were presented with new drinks supplied by small local producers alongside the existing options. Deregulation would introduce a wider variety of drinks, including cheaper local craft beer, white spirits, and brown spirits. Various scenarios of product availability and pricing were validated by experts. Our analysis reveals a 19.93% rise in total annual alcohol per capita consumption (APC), with a statistically significant difference between the treatment and control groups at a 90% confidence level. Further exploration into cross-price elasticities of demand suggests new drinks would partly substitute current options. Policymakers should carefully consider the public health implications, including increased risks of alcohol-related harms, as well as potential economic benefits from market liberalization. Regulatory measures, such as taxation, age restrictions, and public awareness campaigns, may be necessary to mitigate the projected consumption increase and associated social costs.

Keywords: Alcohol deregulation; Drinking pattern; Randomized experimental design; Volumetric choice experiments (VCEs); Consumer behavior (search for similar items in EconPapers)
JEL-codes: I12 I18 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10754-025-09395-6 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:ijhcfe:v:25:y:2025:i:2:d:10.1007_s10754-025-09395-6

Ordering information: This journal article can be ordered from
http://www.springer. ... th/journal/10754/PS2

DOI: 10.1007/s10754-025-09395-6

Access Statistics for this article

International Journal of Health Economics and Management is currently edited by Leemore Dafny, Robert Town, Mark Pauly, David Dranove and Pedro Pita Barros

More articles in International Journal of Health Economics and Management from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().