Does Heavy Drinking by Adults Respond to Higher Alcohol Prices and Taxes? A Survey and Assessment

Jon Nelson

Economic Analysis and Policy, 2013, vol. 43, issue 3, 265-291

Abstract: Higher alcohol prices and taxes are frequently proposed as a policy tool to deal with abusive consumption and adverse alcohol-related outcomes. Its success depends on price responsiveness of drinkers, especially heavy drinkers. This survey examines empirical studies of the price responsiveness of heavy-drinking adults. Additionally, the survey examines the relationship between alcohol prices and mortality due to liver cirrhosis. A review is conducted of 19 individual-based studies that examine price responses by heavy-drinking adults and nine studies of prices and cirrhosis mortality. The review finds only two studies of heavy drinking with a significant and substantial negative price response. For cirrhosis mortality, only two studies find a significant negative price response. Overall, the role of price and taxes as a significant deterrent to heavy drinking by adults is uncertain.

Keywords: alcohol prices; alcohol taxes; alcohol misuse; cirrhosis mortality (search for similar items in EconPapers)
JEL-codes: H20 I12 I18 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:43:y:2013:i:3:p:265-291

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