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Sunday, January 18, 2009

Effects of beverage alcohol price and tax levels on drinking: a meta-analysis of 1003 estimates from 112 studies

Addiction Volume 104 Issue 2, Pages 179 - 190


We conducted a systematic review of studies examining relationships between measures of beverage alcohol tax or price levels and alcohol sales or self-reported drinking. A total of 112 studies of alcohol tax or price effects were found, containing1003 estimates of the tax/price–consumption relationship.

Simple means of reported elasticities are −0.46 for beer, −0.69 for wine and −0.80 for spirits. Meta-analytical results document the highly significant relationships (P < 0.001) between alcohol tax or price measures and indices of sales or consumption of alcohol (aggregate-level r = −0.17 for beer, −0.30 for wine, −0.29 for spirits and −0.44 for total alcohol). Price/tax also affects heavy drinking significantly (mean reported elasticity = −0.28, individual-level r = −0.01, P < 0.01), but the magnitude of effect is smaller than effects on overall drinking

A large literature establishes that beverage alcohol prices and taxes are related inversely to drinking. Effects are large compared to other prevention policies and programs. Public policies that raise prices of alcohol are an effective means to reduce drinking.


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