The impact of price on alcohol consumption and the cost-effectiveness of a volumetric tax on alcohol in Australia

摘要

The consumption of alcohol is associated with significant harm to both the individuals who consume it as well as to the broader society. In Australia, 3.2% of the total burden of disease in 2003 was attributable to alcohol, while the social cost of alcohol in 2004-05 was estimated to be $15.3 billion.Substantial research has investigated the relationship between the price and consumption of alcohol. A recent meta-analysis of such research confirms an inverse relationship between the price and consumption of alcohol. As such, taxation policies have become a widely used and supported instrument across the globe.The impact of price on the consumption of alcohol in Australia is investigated within this thesis. In addition, an explicit exploration of the impact of price on those who consume large annual quantities of alcohol compared to those who drink lower annual quantities is provided.However, within the public health literature there has been a developing focus on the pattern of alcohol consumption or more specifically the frequency and intensity of consumption as opposed to average alcohol consumption. This thesis provides a novel exploration into the impact of price on the pattern of consumption.Taxation policies utilise the negative relationship between price and consumption to achieve multiple policy objectives. Within Australia the rate and methodology of alcohol taxation varies by alcoholic beverage. Alcohol taxation reform has been suggested within Australia and, more specifically, various volumetric taxation regimes have been suggested by both Australian public health advocates and taxation officials.Within this thesis, the implications of introducing an equalised volumetric tax, in terms of its likely impact on the quantity of alcohol consumed, taxation revenue and consumer welfare, are examined within a framework for exploring efficiency; that is, whether a volumetric tax is able to reduce alcohol consumption for the same taxation revenue as collected currently, or for the same reduction in consumer welfare associated with the current taxation regime. In addition to exploring economic efficiency, the cost-effectiveness of implementing a volumetric alcohol tax in Australia is assessed from a health sector perspective. This research provides significant and timely evidence to inform the current policy debate within Australia.