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Alcohol Price Floors and Externalities: The Case of Fatal Road Crashes

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  • Francesconi, Marco

    (University of Essex)

  • James, Jonathan

    (University of Bath)

Abstract

In May 2018, Scotland introduced a minimum unit price on alcohol. We examine the impact of this policy on traffic fatalities and drunk driving accidents. Using administrative data on the universe of vehicle collisions in Britain and a range of quasi-experimental modeling approaches, we do not find that the policy had an effect on road crash deaths and drunk driving collisions. The results are robust to several sensitivity exercises. There is no evidence of effect heterogeneity by income and other predictors of alcohol consumption or cross-border effects. A brief discussion of the policy implications of our findings is provided.

Suggested Citation

  • Francesconi, Marco & James, Jonathan, 2022. "Alcohol Price Floors and Externalities: The Case of Fatal Road Crashes," IZA Discussion Papers 15276, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp15276
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    More about this item

    Keywords

    driving under the influence; externality; alcohol; minimum unit pricing; motor vehicle collisions;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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