Projects per year
Abstract
AIMS: To compare estimated effects of two policy alternatives, (i) a minimum unit price (MUP) for alcohol and (ii) specific (per-unit) taxation, upon current product prices, per capita spending (A$), and per capita consumption by income quintile, consumption quintile and product type.
METHODS: Estimation of baseline spending and consumption, and modelling policy-to-price and price-to-consumption effects of policy changes using scanner data from a panel of demographically representative Australian households that includes product-level details of their off-trade alcohol spending (n = 885; total observations = 12,505). Robustness checks include alternative price elasticities, tax rates, minimum price thresholds and tax pass-through rates.
RESULTS: Current alcohol taxes and alternative taxation and pricing policies are not highly regressive. Any regressive effects are small and concentrated among heavy consumers. The lowest-income consumers currently spend a larger proportion of income (2.3%) on alcohol taxes than the highest-income consumers (0.3%), but the mean amount is small in magnitude [A$5.50 per week (95%CI: 5.18-5.88)]. Both a MUP and specific taxation will have some regressive effects, but the effects are limited, as they are greatest for the heaviest consumers, irrespective of income. Among the policy alternatives, a MUP is more effective in reducing consumption than specific taxation, especially for consumers in the lowest-income quintile: an estimated mean per capita reduction of 11.9 standard drinks per week (95%CI: 11.3-12.6).
CONCLUSION: Policies that increase the cost of the cheapest alcohol can be effective in reducing alcohol consumption, without having highly regressive effects.
Original language | English |
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Pages (from-to) | 493-502 |
Number of pages | 10 |
Journal | Alcohol and Alcoholism |
Volume | 51 |
Issue number | 4 |
DOIs | |
Publication status | Published - 1 Jul 2016 |
Projects
- 1 Finished
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The role of taxes and subsidies in promoting healthy lifestyles: An economic analysis
Sharma, A. (Primary Chief Investigator (PCI)), Hollingsworth, B. (Chief Investigator (CI)), Room, R. G. W. (Chief Investigator (CI)), Hauck, K. (Partner Investigator (PI)), Siciliani, L. (Partner Investigator (PI)) & Windmeijer, F. (Partner Investigator (PI))
Australian Research Council (ARC), Monash University
3/01/12 → 31/12/14
Project: Research