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Do Drinkers Pay Their Way in the European Union?

Author

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  • Sijbren Cnossen

Abstract

Fifty-eight million people - approximately the population of the UK - 'drink too much' in the European Union. Heavy drinking may lead to violent behavior, causes accidents and impairs health. The external costs of harmful alcohol use exceed alcohol excise duty collections by a wide margin. In considering an increase in alcohol duty, however, the welfare gains from a reduction in socially costly heavy drinking must be balanced against the welfare loss from a fall in moderate drinking. This suggests that complementary regulatory measures, which focus on specific problem groups, should be an important element of the policy package.

Suggested Citation

  • Sijbren Cnossen, 2008. "Do Drinkers Pay Their Way in the European Union?," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 64(4), pages 508-539, December.
  • Handle: RePEc:mhr:finarc:urn:sici:0015-2218(200812)64:4_508:ddptwi_2.0.tx_2-j
    DOI: 10.1628/001522108X397705
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    More about this item

    Keywords

    alcohol taxation; European Union; external costs; social costs;

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H8 - Public Economics - - Miscellaneous Issues

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