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What Do the Bingers Drink? Microeconometric Evidence on Negative Externatilities of Alcohol Consumption by Beverage Types

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  • Preety Srivastava
  • Xueyan Zhao

Abstract

The recent debate on alcohol tax reform and recommendations from the Henry Tax Review in Australia have highlighted the need for quantifying externalities of excessive alcohol consumption by beverage types. This paper presents micro-level information from the Australian National Drug Strategy Household Surveys to examine the association between risky drinking behaviour, drinker characteristics, health and labour market status, and types of alcohol beverages consumed. Drinkers of regular strength beer (RSB) and RTDs in a can (RTDC) have the highest incidences of heavy bingeing, and low alcohol beer and fortified and bottled wine least likely. Bottled spirits (BS), RSB and RTDC are most likely linked to risky behaviour such as property damage and physical abuse under alcohol influence. All three spirit products are overwhelmingly the favourable drinks for the underage and young drinkers. Risky drinking behaviour is not found to be strictly associated with the alcohol strength of the products.

Suggested Citation

  • Preety Srivastava & Xueyan Zhao, 2010. "What Do the Bingers Drink? Microeconometric Evidence on Negative Externatilities of Alcohol Consumption by Beverage Types," Monash Econometrics and Business Statistics Working Papers 1/10, Monash University, Department of Econometrics and Business Statistics.
    • Handle: RePEc:msh:ebswps:2010-1
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    File URL: http://www.buseco.monash.edu.au/ebs/pubs/wpapers/2010/wp1-10.pdf
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    References listed on IDEAS

    as
    1. Preety Ramful & Xueyan Zhao, 2008. "Individual Heterogeneity in Alcohol Consumption: The Case of Beer, Wine and Spirits in Australia," The Economic Record, The Economic Society of Australia, vol. 84(265), pages 207-222, June.
    2. Ramful, Preety & Zhao, Xueyan, 2006. "Heterogeneity in Alcohol Consumption: The Case of Beer, Wine and Spirits in Australia," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25359, International Association of Agricultural Economists.
    3. Bethany L. Peters & Edward Stringham, 2006. "No Booze? You May Lose: Why Drinkers Earn More Money Than Nondrinkers," Journal of Labor Research, Transaction Publishers, vol. 27(3), pages 411-421, June.
    4. Garry F. Barrett, 2002. "The Effect of Alcohol Consumption on Earnings," The Economic Record, The Economic Society of Australia, vol. 78(240), pages 79-96, March.
    5. Preety Srivastava, 2010. "Does Bingeing Affect Earnings?," The Economic Record, The Economic Society of Australia, vol. 86(275), pages 578-595, December.
    Full references (including those not matched with items on IDEAS)

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Binge drinking, drink type and dangerous behavior
      by Economic Logician in Economic Logic on 2010-03-24 19:23:00

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    Cited by:

    1. Preety Srivastava & Keith R. McLaren & Michael Wohlgenant & Xueyan Zhao, 2014. "Econometric Modelling of Price Response by Alcohol Types to Inform Alcohol Tax Policies," Monash Econometrics and Business Statistics Working Papers 5/14, Monash University, Department of Econometrics and Business Statistics.
    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. Claudio Bellia & Pietro Columba & Marzia Ingrassia, 2022. "The Brand–Land Identity of Etna Volcano Valley Wines: A Policy Delphi Study," Agriculture, MDPI, vol. 12(6), pages 1-32, June.
    4. John Freebairn, 2010. "Special Taxation of Alcoholic Beverages to Correct Market Failures," Economic Papers, The Economic Society of Australia, vol. 29(2), pages 200-214, June.
    5. Lee, Suin & Pantzalis, Christos & Park, Jung Chul, 2019. "Does local culture trigger speculative investment behavior?," Journal of Business Research, Elsevier, vol. 103(C), pages 71-88.
    6. Giulia Meloni & Kym Anderson & Koen Deconinck & Johan Swinnen, 2019. "Wine Regulations," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 620-649, December.
    7. Joshua Byrnes & Dennis Petrie & Christopher Doran & Anthony Shakeshaft, 2012. "The efficiency of a volumetric alcohol tax in Australia," Applied Health Economics and Health Policy, Springer, vol. 10(1), pages 37-49, January.
    8. Kym Anderson, 2019. "Excise and Import Taxes on Wine Versus Beer and Spirits: An International Comparison," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 18, pages 437-459, World Scientific Publishing Co. Pte. Ltd..
    9. Kym Anderson & Ernesto Valenzuela & Glyn Wittwer, 2009. "Wine export demand shocks and wine tax reform in Australia: Regional consequences using an economy-wide approach," Centre for International Economic Studies Working Papers 2009-02, University of Adelaide, Centre for International Economic Studies.
    10. Kym Anderson, 2010. "Reforming Taxes on Wine and Other Alcoholic Beverage Consumption," Economic Papers, The Economic Society of Australia, vol. 29(2), pages 197-199, June.

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    More about this item

    Keywords

    Alcohol consumption; alcohol tax; binge drinking; beer; wine and spirits;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • D10 - Microeconomics - - Household Behavior - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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