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Consumer Taxes on Alcohol: An International Comparison over Time

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  • Anderson, Kym

Abstract

Rates of alcohol taxation, and the types of tax instruments used, vary enormously between countries and have tended to rise in recent times. Within each country they also vary between beverages, and often between qualities and styles of each beverage. This paper computes consumer tax equivalents in US dollars per litre of alcohol and as percentages of wholesale prices of representative beverages for 42 high-and middle-income countries. That allows comparisons across countries of taxes not just for each product on its own but also relative to those for other alcoholic beverages. The wide dispersion of rates and differences in tax instruments across countries and products suggest differing strengths of health and welfare lobbyists and industry groups in influencing government decision-making.

Suggested Citation

  • Anderson, Kym, 2020. "Consumer Taxes on Alcohol: An International Comparison over Time," CEPR Discussion Papers 14388, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:14388
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    References listed on IDEAS

    as
    1. Alexander J. Holmes & Kym Anderson, 2019. "Convergence in National Alcohol Consumption Patterns: New Global Indicators," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 25, pages 631-670, World Scientific Publishing Co. Pte. Ltd..
    2. repec:lic:licosd:40118 is not listed on IDEAS
    3. Kym Anderson, 2019. "Excise Taxes on Wines, Beers and Spirits: An Updated International Comparison," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 19, pages 461-477, World Scientific Publishing Co. Pte. Ltd..
    4. Kym Anderson & Giulia Meloni & Johan Swinnen, 2019. "Global Alcohol Markets: Evolving Consumption Patterns, Regulations, and Industrial Organizations," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 26, pages 671-712, World Scientific Publishing Co. Pte. Ltd..
    5. Ou Yang & Xueyan Zhao & Preety Srivastava, 2016. "Binge Drinking and Antisocial and Unlawful Behaviours in Australia," The Economic Record, The Economic Society of Australia, vol. 92(297), pages 222-240, June.
    6. 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.
    7. Kym Anderson, 2019. "Excise and Import Taxes on Wine Versus Beer and Spirits: An International Comparison," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 18, pages 437-459, World Scientific Publishing Co. Pte. Ltd..
    8. Preety Srivastava & Xueyan Zhao, 2010. "What Do the Bingers Drink? Micro‐Unit Evidence on Negative Externalities and Drinker Characteristics of Alcohol Consumption by Beverage Types," Economic Papers, The Economic Society of Australia, vol. 29(2), pages 229-250, June.
    9. Alston, Julian M. & Fuller, Kate B. & Lapsley, James T. & Soleas, George & Tumber, Kabir P., 2015. "Splendide Mendax: False Label Claims About High and Rising Alcohol Content of Wine," Journal of Wine Economics, Cambridge University Press, vol. 10(3), pages 275-313, December.
    10. Hart, Jarrett & Alston, Julian M., 2019. "Persistent Patterns in the U.S. Alcohol Market: Looking at the Link between Demographics and Drinking," Journal of Wine Economics, Cambridge University Press, vol. 14(4), pages 356-364, November.
    11. Preety Srivastava & Keith R. McLaren & Michael Wohlgenant & Xueyan Zhao, 2015. "Disaggregated econometric estimation of consumer demand response by alcoholic beverage types," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(3), pages 412-432, July.
    12. Britten-Jones, Mark & Nettle, Richard S & Anderson, Kym, 1987. "On Optimal Second-Best Trade Intervention in the Presence of a Domestic Divergence," Australian Economic Papers, Wiley Blackwell, vol. 26(49), pages 332-336, December.
    13. repec:lic:licosd:41719 is not listed on IDEAS
    14. Giulia Meloni & Kym Anderson & Koen Deconinck & Johan Swinnen, 2019. "Wine Regulations," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 620-649, December.
    15. Kym Anderson, 2010. "Excise and Import Taxes on Wine vs Beer and Spirits: An International Comparison," Wine Economics Research Centre Working Papers 2010-05, University of Adelaide, Wine Economics Research Centre.
    16. Hart, Jarrett & Alston, Julian M., 2020. "Evolving Consumption Patterns in the U.S. Alcohol Market: Disaggregated Spatial Analysis," Journal of Wine Economics, Cambridge University Press, vol. 15(1), pages 5-41, February.
    17. Corden, W. Max., 1997. "Trade Policy and Economic Welfare," OUP Catalogue, Oxford University Press, edition 2, number 9780198775348.
    18. Meloni, Giulia & Swinnen, Johan, 2013. "The Political Economy of European Wine Regulations," Journal of Wine Economics, Cambridge University Press, vol. 8(3), pages 244-284, December.
    19. Pogue, Thomas F & Sgontz, Larry G, 1989. "Taxing to Control Social Costs: The Case of Alcohol," American Economic Review, American Economic Association, vol. 79(1), pages 235-243, March.
    20. Preety Srivastava & Xueyan Zhao, 2010. "What Do the Bingers Drink? Microeconometric Evidence on Negative Externatilities of Alcohol Consumption by Beverage Types," Monash Econometrics and Business Statistics Working Papers 1/10, Monash University, Department of Econometrics and Business Statistics.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Kym Anderson, 2020. "Evolving from a rum state: Australia's alcohol consumption," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 724-749, July.
    2. Wittwer, Glyn & Anderson, Kym, 2021. "COVID-19 and Global Beverage Markets: Implications for Wine," Journal of Wine Economics, Cambridge University Press, vol. 16(2), pages 117-130, May.
    3. Cockx, Lara & Meloni, Giulia & Swinnen, Johan, 2021. "The Water of Life and Death: A Brief Economic History of Spirits," Journal of Wine Economics, Cambridge University Press, vol. 16(4), pages 355-399, November.
    4. Kym Anderson & Vicente Pinilla, 2022. "Wine's belated globalization, 1845–2025," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 742-765, June.
    5. Anderson, Kym, 2020. "Evolving from a Rum State: Australia’s Alcohol Consumption," CEPR Discussion Papers 14761, C.E.P.R. Discussion Papers.
    6. Kym Anderson, 2020. "Asia’S Emergence In Global Beverage Markets: The Rise Of Wine," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(04), pages 755-779, June.
    7. Wittwer, Glyn & Anderson, Kym, 2020. "A Model of Global Beverage Markets," Journal of Wine Economics, Cambridge University Press, vol. 15(3), pages 330-354, August.
    8. Anna Carbone, 2021. "From Flasks to Fine Glasses: Recent Trends in Wine Economics," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 7(2), pages 187-198, July.
    9. Kym Anderson & Glyn Wittwer, 2022. "Proposed alcohol tax reform in the UK: Implications for wine-exporting countries," Wine Economics Research Centre Working Papers 2022-02, University of Adelaide, Wine Economics Research Centre.
    10. Glyn Wittwer & Kym Anderson, 2021. "COVID‐19’s impact on Australian wine markets and regions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(4), pages 822-847, October.
    11. Anderson, Kym, 2020. "Asia’s emergence in global beverage markets: The rise of wine," CEPR Discussion Papers 14389, C.E.P.R. Discussion Papers.
    12. Wittwer, Gly & Anderson, Kym, 2021. "COVID-19’s impact on Australian wine markets and regions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(04), January.
    13. Giulia Meloni & Kym Anderson & Koen Deconinck & Johan Swinnen, 2019. "Wine Regulations," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 620-649, December.
    14. Glyn Wittwer & Kym Anderson, 2022. "Enhancing a model of global beverage markets," Wine Economics Research Centre Working Papers 2022-04, University of Adelaide, Wine Economics Research Centre.
    15. Paola Corsinovi, 2021. "Consumer Taxes on Alcohol: Is the Wine Sector a Niche Within the Alcoholic Beverages?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 7(2), pages 341-348, July.

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    More about this item

    Keywords

    Consumer tax equivalents; Excise taxes; Alcohol import tariffs;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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