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Nudging Alcohol Moderation via Excise Tax Reform: The Case of Beer in Australia

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  • Kym Anderson

Abstract

Australia taxes alcohol consumption more than most other affluent economies. A switch to low‐alcohol beer has been encouraged in Australia by it being subject to a lower rate of excise tax than regular beer, but no such incentive applies to packaged mid‐strength beer. Would more or less alcohol be consumed if the tax rates for mid‐strength beer were lowered, for example to those for low‐strength beer? This study estimates changes in demand that could result from such a policy change. It finds that alcohol consumption from each of beer, wine and spirits could fall, but by only a little more than 1% in total.

Suggested Citation

  • Kym Anderson, 2025. "Nudging Alcohol Moderation via Excise Tax Reform: The Case of Beer in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 58(3), pages 211-221, September.
    • Handle: RePEc:bla:ausecr:v:58:y:2025:i:3:p:211-221
    DOI: 10.1111/1467-8462.70006
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    References listed on IDEAS

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    1. 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.
    2. Anderson, Kym, 2020. "Consumer Taxes on Alcohol: An International Comparison over Time," Journal of Wine Economics, Cambridge University Press, vol. 15(1), pages 42-70, February.
    3. 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.
    4. James Fogarty, 2010. "The Demand For Beer, Wine And Spirits: A Survey Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 428-478, July.
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