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The Effect of Introducing a Minimum Price on the Distribution of Alcohol Purchase: A Counterfactual Analysis

Author

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  • Anurag Sharma

    (Monash University [Malaysia])

  • Fabrice Etilé

    (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique, PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Kompal Sinha

Abstract

We use counterfactual analysis techniques to evaluate the impact of a $2 minimum unit price (MUP) on the distribution of Australian (Victorian) household off-trade alcohol purchases. Our estimates suggest that a $2 MUP significantly reduces the purchases of at-risk households by up to −0.92 [90% CI: −1.55, −0.28] standard drinks at the highest quantiles and has substantially less effect on households purchasing at light and moderate levels. A $2 MUP may reduce the proportions of male and female shoppers purchasing at the public health threshold of more than two standard drinks per household member per day by −3.03 [90% CI: −4.83, −1.22] percentage points (relative variation: −17%); and −1.85 [90% CI: −2.60, −1.10] percentage points (relative variation:−22%), respectively. Implementing an MUP on alcohol thus promises significant positive impacts on public health.

Suggested Citation

  • Anurag Sharma & Fabrice Etilé & Kompal Sinha, 2016. "The Effect of Introducing a Minimum Price on the Distribution of Alcohol Purchase: A Counterfactual Analysis," PSE-Ecole d'économie de Paris (Postprint) halshs-01380186, HAL.
    • Handle: RePEc:hal:pseptp:halshs-01380186
    DOI: 10.1093/erae/jbw006
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    Cited by:

    1. Anurag Sharma & Brian Vandenberg, 2019. "Heterogenous wealth effects of minimum unit price on purchase of alcohol: Evidence using scanner data," PLOS ONE, Public Library of Science, vol. 14(12), pages 1-16, December.
    2. Fabrice Etilé, 2019. "The Economics of Diet and Obesity: Public Policy," Post-Print hal-02154445, HAL.
    3. Calcott, Paul, 2019. "Minimum unit prices for alcohol," Journal of Health Economics, Elsevier, vol. 66(C), pages 18-26.

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