Alcoholic beverage consumption in China: a censored demand system approach

Suwen Pan, Cheng Fang and Jaime Malaga

Applied Economics Letters, 2006, vol. 13, issue 15, 975-979

Abstract: China's admission in the WTO and commitment to cut tariffs on alcohol related goods provide a considerable opportunity for the USA, Europe and other countries. The present study examines Chinese consumer behaviour with regard to alcoholic beverages (wine, wine cooler and beer) using a Chinese household survey data. The results show that beer and wine cooler are normal goods while wine is still a luxury good in China. The price elasticities of wine and wine cooler are larger than that of beer.

Date: 2006
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DOI: 10.1080/13504850500425964

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