Cost-Effectiveness of Increasing Alcohol Taxes
Author Information
Author(s): Matthijs van den Berg, Pieter HM van Baal, Tariq Luqman, Albertine J Schuit, G Ardine de Wit, Rudolf T Hoogenveen
Primary Institution: National Institute of Public Health and the Environment
Hypothesis
Is increasing alcohol taxes a cost-effective strategy for reducing alcohol consumption and improving public health?
Conclusion
An alcohol tax increase is a cost-effective policy instrument focusing on health-care costs and health consequences for drinkers.
Supporting Evidence
- In the Swedish scenario, many more quality-adjusted life-years were gained than in the Dutch scenario.
- The Dutch scenario had an incremental cost-effectiveness ratio of €5100 per quality-adjusted life-year.
- The Swedish scenario had an incremental cost-effectiveness ratio of €5300 per quality-adjusted life-year.
- Alcohol tax increases can lead to significant health gains over a long time horizon.
Takeaway
Raising taxes on alcohol can help people drink less and improve health, which is a smart way to save money on health care.
Methodology
A chronic disease model was used to estimate health benefits and costs associated with alcohol tax increases over a 100-year period.
Potential Biases
Assumptions about price elasticity and the effects of tax increases on consumption may introduce bias.
Limitations
The study did not account for broader societal costs and consequences of alcohol abuse, nor did it model effects on specific subgroups with deviant drinking patterns.
Participant Demographics
The study focused on the entire Dutch population.
Digital Object Identifier (DOI)
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