Report suggests affordability of alcohol is a driver of consumption and harm
In April 2009 the European Commission published a report on the affordability of alcohol which it had commissioned for RAND Europe. The report was produced to be discussed at the
European Commission’s Alcohol and Health Forum, and one of the main means of implementing the EU’s Alcohol Harm Reduction Strategy.
The report, “Understanding the link between alcohol affordability, consumption and harms”, analyses the effect of alcohol affordability on consumption and three measures of associated harm: fatal traffic accidents, increase in traffic injuries and chronic liver cirrhosis. These findings refute the longstanding argument of the industry that price and affordability have no effect on consumption and harm.
Affordability of alcoholic beverages in the EU
The report suggests that in 18 Member States, affordability of alcohol has increased over the past twelve years. For some countries, alcohol affordability has more than doubled over this period. More notably, alcohol appears to have become relatively more affordable for 16-24 year olds compared to the general population.
Young people are particularlysensitive to changes in price
Studies have shown that young people are sensitive to alcohol price changes, and that price increases lead not only to reduced frequency of drinking but also to smaller quantities drunk in each drinking event.
This has important implications for alcohol policy especially across the EU, where there is growing recognition of the high incidence of hazardous youth drinking.
Positive relationship between alcohol affordability and consumption
Researchers found that an increase in affordability is associated with an increase in consumption in the short term; a finding consistent with existing research.
Positive relationship between alcohol consumption and three measures of harm
In addition, the report finds statistically significant, positive relationships between consumption and fatal traffic accidents, traffic injuries and liver cirrhosis.
A 1% increase in consumption is associated with an increase of:
- 0.86% in fatal traffic accidents
- 0.61 % in traffic injuries
- 0.37% in chronic liver cirrhosis
Lila Rabinovich, the lead author of the report said “The report provides the first comprehensive assessment of the affordability of alcohol in the European Union. It shows that alcohol has become more affordable in most EU Member States over the last decade. This increase in affordability should be of concern to policy-makers, as this study also demonstrates that increases in affordability are linked to increases in consumption, which in turn lead to increases in alcohol harms. The findings of this study thus suggest that pricing policy could be an important part of an effective policy mix to tackle harmful and hazardous alcohol consumption”.
Mariann Skar, Secretary General of Eurocare, welcomed the report and added “WHO recommendations have consistently pinpointed pricing policies as one of the most effective measures to reduce consumption and harm. However it should be remembered that no stand alone measure will solve all alcohol-related problems. The way forward is an integrated approach including: regulating the promotion and availability of alcohol, drink driving countermeasures, education and awareness raising as well as treatment and early interventions.”