New evidence on controlling alcohol use through price

Alcohol Policy: Gaps between Legislative Action and Current Research

This paper compares alcohol policies under debate in U.S. state legislatures with policies that have been the focus of research attention. We reviewed the research literature to identify empirical studies of each policy and types of outcome variables analyzed. The two most evaluated alcohol control policies are the minimum legal drinking age and excise tax. Eight other policies had 20 or more studies evaluating them. The remaining alcohol policies received little attention in the research literature. Alcohol consumption and traffic crashes were the most frequent outcomes used in alcohol policy studies. Most studies evaluated policy changes at the state or national level, with few studies of local or institutional policies. During 1997 some 463 alcohol control bills were introduced at state legislatures. Many specific alcohol policies under debate in state legislatures have little research evidence to guide policy decision-making, pointing to areas where future research is needed.

Injury news coverage, relative concern, and support for alcohol-control policies: an impersonal impact explanation

Research on the impersonal impact hypothesis suggests that news (especially print) coverage of health and safety risks primarily influences perceptions of risk as a societal issue, and not perceptions of personal risk. The authors propose that the impersonal impact of news-impact primarily on concerns about social-level risks-will mediate effects of news stories on support for public health policies; such effects substantively matter as evidence suggests health policies, in turn, have important effects on protective behaviors and health outcomes. In an experiment using 60 randomly selected violent crime and accident news stories manipulated to contain or not contain reference to alcohol use as a causative factor, the authors find that the effect of stories that mention alcohol as a causative factor on support for alcohol-control policies is mediated by social-level concern and not by personal-level concern. In so doing, the authors provide a theoretical explanation as well as empirical evidence regarding the potential for news coverage-including breaking or episodic news-to influence health-related public policy.

The effectiveness of tax policy interventions for reducing excessive alcohol consumption and related harms

A systematic review of the literature to assess the effectiveness of alcohol tax policy interventions for reducing excessive alcohol consumption and related harms was conducted for the Guide to Community Preventive Services (Community Guide). Seventy-two papers or technical reports, which were published prior to July 2005, met specified quality criteria, and included evaluation outcomes relevant to public health (e.g., binge drinking, alcohol-related crash fatalities), were included in the final review. Nearly all studies, including those with different study designs, found that there was an inverse relationship between the tax or price of alcohol and indices of excessive drinking or alcohol-related health outcomes. Among studies restricted to underage populations, most found that increased taxes were also significantly associated with reduced consumption and alcohol-related harms. According to Community Guide rules of evidence, these results constitute strong evidence that raising alcohol excise taxes is an effective strategy for reducing excessive alcohol consumption and related harms. The impact of a potential tax increase is expected to be proportional to its magnitude and to be modified by such factors as disposable income and the demand elasticity for alcohol among various population groups.

Non-advertising alcohol promotions in licensed premises: does the Code of Practice ensure responsible promotion of alcohol?

INTRODUCTION AND AIMS

Binge drinking is a major public health issue in Australia, particularly among young people. There has been a considerable focus on alcohol advertising, among both researchers and policy makers, resulting in efforts to bring about some level of regulation of unacceptable advertising practices. However - despite the existence of a Code of Practice for Responsible Promotion of Liquor Products which provides 'a framework of practices which are considered acceptable and reasonable' for licensed premises - there are few, if any, data on the nature and extent of promotions which could arguably fall under either 'acceptable' or 'unacceptable' practices.

DESIGN AND METHODS

Over an 8-week period we monitored promotions offered by licensed venues (pubs, bars and clubs) in the Wollongong central area. Seventeen venues were identified, and each venue was visited daily for 1 week. Trained research assistants took notes on all promotions/events in visited venues, including both manufacturer- and management-initiated.

RESULTS

We identified a range of different types of promotions, including low cost and free drinks. Some of the promotions identified could be seen to have a positive public health impact, such as free food and free transport. However, the majority of promotions were of a nature likely to increase the likelihood of excessive drinking.

DISCUSSION AND CONCLUSIONS

It is evident from this review that there are numerous examples of promotions which breach both the spirit and the letter of the Code. It is equally evident that the system for monitoring compliance with the Code is fundamentally inadequate.

The price of alcohol: a consideration of contextual factors

BACKGROUND

The current study considers the determinants of prices charged for alcoholic beverages by on-premise and off-premise outlets in Alaska. Alcohol outlet densities, a surrogate measure for local retail competition, are expected to be negatively associated with prices while costs associated with distribution are expected to be positively related to prices. Community demographic and economic characteristics may affect observed local prices via the level of demand, retail costs borne by retailers, or the quality of brands offered for sale.

METHODS

The core data for these analyses came from a telephone survey of Alaskan retail establishments licensed to serve alcohol. This survey utilized computer-assisted telephone interviewing (CATI) techniques to collect alcohol-pricing information from on-premise (i.e., establishments where alcohol is consumed at the point of purchase such as bars and restaurants) and off-premise (i.e., establishments such as grocery stores and convenience markets where consumption occurs in other locations) alcohol retailers throughout the state of Alaska. Price estimates were developed for each beverage-type based on alcohol content. Separate regression analyses were used to model each of the 8 price indices (on-premise and off-premise measures for beer, spirits, wine, and the average price across beverage types). All regressions also controlled for a set of zip-code level indicators of community economic and demographic characteristics based on census data.

RESULTS

Outlet density per roadway mile was unrelated to price for both on- and off-premise establishments, either across or between beverage types. In contrast, overall distribution costs did appear to be related to alcohol price. The demographic and economic variables, as a group, were significantly related to observed prices.

CONCLUSIONS

More attention needs to be directed to the manner in which sellers and buyers behave relative to alcoholic beverages. Alcohol demand remains responsive to prices; yet, consumers have considerable latitude in determining the price that they pay for alcohol.

Alcohol Prices, Beverage Quality, and the Demand for Alcohol: Quality Substitutions and Price Elasticities

BACKGROUND

Although the published literature on alcohol beverage taxes, prices, sales, and related problems treats alcoholic beverages as a simple good, alcohol is a complex good composed of different beverage types (i.e., beer, wine, and spirits) and quality brands (e.g., high-, medium-, and low-quality beers). As a complex good, consumers may make substitutions between purchases of different beverage types and brands in response to price increases. For this reason, the availability of a broad range of beverage prices provides opportunities for consumers to mitigate the effects of average price increases through quality substitutions; a change in beverage choice in response to price increases to maintain consumption.

METHODS

Using Swedish price and sales data provided by Systembolaget for the years 1984 through 1994, this study assessed the relationships between alcohol beverage prices, beverage quality, and alcohol sales. The study examined price effects on alcohol consumption using seemingly unrelated regression equations to model the impacts of price increases within 9 empirically defined quality classes across beverage types. The models enabled statistical assessments of both own-price and cross-price effects between types and classes.

RESULTS

The results of these analyses showed that consumers respond to price increases by altering their total consumption and by varying their brand choices. Significant reductions in sales were observed in response to price increases, but these effects were mitigated by significant substitutions between quality classes.

CONCLUSIONS

The findings suggest that the net impacts of purposeful price policy to reduce consumption will depend on how such policies affect the range of prices across beverage brands.

The marketing of alcohol to college students: the role of low prices and special promotions

BACKGROUND

Heavy episodic or binge drinking has been recognized as a major problem on American college campuses affecting the health, safety, and education of students. The present study examines the alcohol environment surrounding college campuses and assesses the impact on students' drinking. This environment includes alcohol promotions, price specials, and advertising at drinking establishments that serve beer for on-premise consumption as well as retail outlets that sell beer for off-premise consumption.

METHODS

The study used student self-report data from the 2001 College Alcohol Study (CAS) and direct observational assessments by trained observers who visited alcohol establishments in communities where the participating colleges were located. The analytic sample included more than 10,000 students as well as 830 on-premise and 1684 off-premise establishments at 118 colleges.

RESULTS

Alcohol specials, promotions, and advertisements were prevalent in the alcohol outlets around college campuses. Almost three quarters of on-premise establishments offered specials on weekends, and almost one half of the on-premise establishments and more than 60% of off-premise establishments provided at least one type of beer promotion. The availability of large volumes of alcohol (24- and 30-can cases of beer, kegs, party balls), low sale prices, and frequent promotions and advertisements at both on- and off-premise establishments were associated with higher binge drinking rates on the college campuses. In addition, an overall measure of on- and off-premise establishments was positively associated with the total number of drinks consumed.

CONCLUSIONS

The regulation of marketing practices such as sale prices, promotions, and advertisements may be important strategies to reduce binge drinking and its accompanying problems.

Prevention of alcohol and drug "abuse" problems at the community level: what research tells us

This paper presents alternative models for reducing alcohol-involved problems at the local level and a review of research evidence about effectiveness. A computer simulation model and results from a community trial in the United States is used to illustrate and demonstrate possibilities.

Planning for alcohol-problem prevention through complex systems modeling: results from SimCom

This article describes a computer-based model of alcohol use and misuse intervention called SimCom. This generic model, based on the best available scientific knowledge, incorporates eight interaction subsystems. When loaded with actual data from a locality, the model has the ability to "act like" this location and can be used to forecast the future effects of alternative prevention strategies. The article describes benchmark testing of a model for the state of California, including projected prevention strategies for that state.

The demand for alcohol: the differential response to price

Although several studies indicate that drinking is responsive to price, little work has focused on whether prices have a differential effect on light, moderate, or heavy drinking. This study examines the price responsiveness of the demand for alcohol: whether heavy drinkers are less sensitive to price than light or moderate drinkers. The study uses data on alcohol consumption on the 1983 National Health Interview Survey. The results indicate that both light and heavy drinkers are much less price elastic than moderate drinkers. Further, we cannot reject the hypothesis that the very heaviest drinkers have perfectly price inelastic demands.

The Price of Cocaine, Heroin and Marijuana, 1981–1993

The analysis reported in this article provides a consistent price series for cocaine, heroin, and marijuana based on over twelve years of data from the Drug Enforcement Administration's System to Retrieve Information from Drug Evidence (STRIDE). Cocaine and heroin prices fell sharply through most of the 1980s, but seem to have stabilized in the early 1990s. In contrast, marijuana prices rose markedly through most of the 1980s, but seem to have fallen in 1992 and 1993.

Imaginary constructions and forensic reconstructions of fatal violence against women: implications for community violence prevention

The almost exclusive media focus on political violence in South Africa has deflected attention from the high levels of interpersonal violence in areas of socioeconomic deprivation. In order to explore the tension between an at-risk community's perspective and the current reality of violence against women, imaginary constructions of their own violent death produced by 45 African female interview respondents were examined in conjunction with forensic data relating to 73 African female homicide victims in Cape Town, South Africa. The prototypical account of an imagined homicide involved a female commuter being approached by a group of men, taunted and assaulted, raped and then killed. The majority of actual homicides occurred at or in the vicinity of the residence of the victim, with the attacker being known to the deceased. Whilst only 1 of the imagined homicide narratives depicted the use of alcohol by the victim, over half the actual homicides had elevated postmortem blood alcohol levels. These and other disjunctions and convergencies between lay and forensic constructions of violent female death should be viewed in the wider context of enmeshment in social circumstance, and could provide some understanding of how at-risk communities perceive violence against women, thereby providing a foundation for appropriate prevention programmes.

Changes in access to and availability of alcohol in the United States: research and policy implications

Recent changes in alcohol availability and access in the United States are reviewed and the role public policy research played in such changes are discussed. The paper finds that there are two concurrent trends, i.e. increased alcohol availability through changes in wine and spirits structural availability, lower prices and increased outlet densities, and decreased availability and access through higher minimum drinking ages, server intervention and training, server liability, low- and no-alcohol beverages, and warning labels on alcohol containers. This paper discusses these trends and the implications for policy development to which research is an input.

Effects of the elimination of a state monopoly on distilled spirits' retail sales: a time-series analysis of Iowa

Since the end of prohibition in the USA, only one state, Iowa, has eliminated its state retail monopoly of distilled spirits sales for off-premise consumption. In March 1987 all state retail stores were closed, and private establishments were licensed to sell distilled spirits. Interrupted time-series analyses of apparent spirits consumption in Iowa, controlling for nationwide sales trends over the past two decades, identified a statistically significant 9.5% increase in spirits sales following the policy change. While there was a corresponding 13.7% decline in wine sales, and no change in beer sales, privatization of spirits retail sales yielded a net increase in total alcohol consumption in Iowa. No changes were found in spirits sales in states bordering Iowa.

Policy alternatives for alcohol-impaired driving

This article summarizes current scientific evidence about the impact of public policy measures on alcohol-related motor vehicle crashes. The public policy measures considered are (1) minimum drinking age laws, (2) taxation of alcoholic beverages, (3) drinking and driving laws, (4) laws and regulations governing the physical availability of alcoholic beverages, and (5) server intervention programs. It is concluded that certain public policy measures reduce alcohol-related crashes. These measures include higher taxes on alcoholic beverages and at least some laws and regulations governing the physical availability of alcohol (as well as the minimum drinking age). The article suggests that strengthening drinking and driving laws without also adopting these other measures may have less than optimum (and possibly disappointing) effects.

The control-of-consumption approach to alcohol abuse prevention. II. A review of empirical studies

Key empirical studies of the postulates of the single-distribution theory and the associated control-of-consumption approach are reviewed. The review is organized in terms of the six links possible between the four variables of the "Ledermann string" (availability, average consumption, proportion of heavy consumers, and prevalence of damage) presented in Part I. It is concluded that, on the whole, the available evidence is too inconsistent to support the control-of-consumption approach and that a more comprehensive understanding of alcohol abuse and prevention is needed.