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An international analysis of the price and affordability of beer

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  • Evan Blecher
  • Alex Liber
  • Corné Van Walbeek
  • Laura Rossouw

Abstract

Aims: To apply methods for measuring the affordability of beer in a large cross section of countries, and to investigate trends in affordability of beer over time. Methods: We use the Relative Income Price (RIP), which uses per capita GDP, to measure the affordability of beer in up to 92 countries from 1990 to 2016 (69 countries were included in 1990, however the survey has since grown to include 92 countries). In addition to affordability, we also investigate trends in the price of beer. Results: While beer is, on average, similarly priced in high-income (HICs) and low- and middle-income countries (LMICs), it is significantly more affordable in HICs. There is significant variation in both price and affordability in HICs and in LMICs. Beer has become cheaper in real terms in 49% (18/37) of HICs and 43% (20/46) of LMICs. Beer became more affordable in most HICs (RIP: 30/37 or 81%) and LMICs (RIP: 42/44 or 95%) Conclusions: The increased affordability over time of beer in most countries raises concerns about public health. Governments need to increase taxes on beer so that it becomes less affordable over time, in an effort to improve public health.

Suggested Citation

  • Evan Blecher & Alex Liber & Corné Van Walbeek & Laura Rossouw, 2018. "An international analysis of the price and affordability of beer," PLOS ONE, Public Library of Science, vol. 13(12), pages 1-16, December.
    • Handle: RePEc:plo:pone00:0208831
    DOI: 10.1371/journal.pone.0208831
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    References listed on IDEAS

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    1. Gallet, Craig A., 2007. "The demand for alcohol: a meta-analysis of elasticities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 1-15.
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    2. Ball, Jude & Grucza, Richard & Livingston, Michael & ter Bogt, Tom & Currie, Candace & de Looze, Margaretha, 2023. "The great decline in adolescent risk behaviours: Unitary trend, separate trends, or cascade?," Social Science & Medicine, Elsevier, vol. 317(C).
    3. Dehos, Fabian T., 2022. "Underage access to alcohol and its impact on teenage drinking and crime," Journal of Health Economics, Elsevier, vol. 81(C).
    4. Dehos, Fabian, 2020. "Legal access to alcohol and its impact on drinking and crime," Ruhr Economic Papers 884, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Rodrigo García Arancibia & Mariano Coronel & Jimena Vicentin Masaro, 2021. "Latin American Beer Production and Import Demand for Regional Malt and Malted Barley," Working Papers 85, Red Nacional de Investigadores en Economía (RedNIE).
    6. Ce Shang & Anh Ngo & Frank J. Chaloupka, 2020. "The pass-through of alcohol excise taxes to prices in OECD countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(6), pages 855-867, August.

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