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Minimum Unit Pricing, Alcohol Consumption and Infant Health: Evidence from the Alice Springs Liquor Supply Plan

Author

Listed:
  • Guthridge, Steve

    (Menzies School of Health Research)

  • Schurer, Stefanie

    (University of Sydney)

  • Taylor, Paige J.

    (University of Sydney)

Abstract

Restricting purchases or establishing a minimum (floor) price for low-cost, high-strength alcoholic beverages is an increasingly popular policy used to address problem drinking and alcohol-related harm. We study the consumption and short-term health-at-birth impacts of the 2006 Alice Springs Liquor Supply Plan (LSP) which effectively doubled the minimum per-unit price of alcohol by prohibiting sales of large containers of wine. Net alcohol consumption per person dropped by 12%. Both price and consumption remained unaffected in control regions. We estimated a price elasticity of demand for the cheapest drink in the market as low as -0.2. While this change decreased the total volume of pure alcohol consumed, it did not achieve a key policy objective to improve infant health outcomes among babies most at-risk for alcohol-related harm. We discuss mechanisms and potential policy conclusions.

Suggested Citation

  • Guthridge, Steve & Schurer, Stefanie & Taylor, Paige J., 2025. "Minimum Unit Pricing, Alcohol Consumption and Infant Health: Evidence from the Alice Springs Liquor Supply Plan," IZA Discussion Papers 18201, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18201
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    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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