relation to their effectiveness in reducing youth binge drinking and the associated issues from an economics perspective. This summary will provide insight into alcohol consumption in Australia, before concentrating on youth consumption levels and examining the associated social costs. Economic theory will help explain these negative externalities and how they can be corrected through government policy. Finally, critical analysis of the effectiveness of the ‘alcopops tax’, a price floor policy and a restriction on alcohol advertising, will determine the likelihood of policy success through the examination of policy strengths and weaknesses.
Australian alcohol statistics provide insight into consumption levels, how much alcohol is available …show more content…
Excessive consumption can cause young people to take risks and put themselves in dangerous situations (State Government of Victoria ‘SGV’, 2015, para.8) as well as affecting brain development, as the frontal lobe and hippocampus (associated with motivation, impulse control and addiction) undergo dramatic changes (SGV, 2015, para.15). Studies from Pascal and Jones (2014) reveal that over 80% of alcohol consumed by 14–17 year olds is drunk at high risk levels, and up to 75% consumed by binge drinkers aged 18-24 were Ready to Drink beverages (RTD’s, Alcopops) (ABS, 2006). In efforts to combat this, in 2008 the Australian government introduced a 70% tax increase on RTD’s, known as the ‘Alcopops Tax’. A report from the National Alliance for Action on Alcohol (NAAA) in 2011 stated alcohol taxation as one of the most effective policy interventions to reduce the level of alcohol consumption and related problems. As a result of this initiative, combined with policies increasing knowledge, training and sales restrictions, the rate of drinking in Australia has dropped to an all-time-low (ABS, …show more content…
al. (2011) states “a comprehensive graduated volumetric taxation system that covers all types of alcoholic beverages and is informed by the relationship between consumption of these products and consequent harm” as an effective way to reduce negative externalities. Although, estimating the exact impact at various price points is challenging, and it is therefore difficult to calculate the net benefit to the community (ANPHA, 2014,
Australian alcohol statistics provide insight into consumption levels, how much alcohol is available …show more content…
Excessive consumption can cause young people to take risks and put themselves in dangerous situations (State Government of Victoria ‘SGV’, 2015, para.8) as well as affecting brain development, as the frontal lobe and hippocampus (associated with motivation, impulse control and addiction) undergo dramatic changes (SGV, 2015, para.15). Studies from Pascal and Jones (2014) reveal that over 80% of alcohol consumed by 14–17 year olds is drunk at high risk levels, and up to 75% consumed by binge drinkers aged 18-24 were Ready to Drink beverages (RTD’s, Alcopops) (ABS, 2006). In efforts to combat this, in 2008 the Australian government introduced a 70% tax increase on RTD’s, known as the ‘Alcopops Tax’. A report from the National Alliance for Action on Alcohol (NAAA) in 2011 stated alcohol taxation as one of the most effective policy interventions to reduce the level of alcohol consumption and related problems. As a result of this initiative, combined with policies increasing knowledge, training and sales restrictions, the rate of drinking in Australia has dropped to an all-time-low (ABS, …show more content…
al. (2011) states “a comprehensive graduated volumetric taxation system that covers all types of alcoholic beverages and is informed by the relationship between consumption of these products and consequent harm” as an effective way to reduce negative externalities. Although, estimating the exact impact at various price points is challenging, and it is therefore difficult to calculate the net benefit to the community (ANPHA, 2014,