Michael Fanta – Jan Evangelista Purkyně University in Ústí nad Labem, Pasteurova 1, 400 96 Ústí nad Labem, Czech Republic

Radek Soběhart – Jan Evangelista Purkyně University in Ústí nad Labem, Pasteurova 1, 400 96 Ústí nad Labem, Czech Republic

Aleš Rod – Jan Evangelista Purkyně University in Ústí nad Labem, Pasteurova 1, 400 96 Ústí nad Labem, Czech Republic

DOI: https://doi.org/10.31410/EMAN.2020.93


4th International Scientific Conference – EMAN 2020 – Economics and Management: How to Cope With Disrupted Times, Online/Virtual, September 3, 2020, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-30-1, ISSN 2683-4510

Abstract:

This research paper focuses on alcoholic beverages and their price affordability between
2000-2016 in the member states of the European Union. Based on the data from OECD, WHO, Eurostat,
and the European Commission, the paper primarily discusses development of prices and consumption
of alcoholic products, level of excise duties, and the development of average wages. Overall
alcohol consumption has decreased in most EU member states over the past two decades, even though
price affordability has increased due to relatively dynamic development of average wages. As consumption
of alcohol products is decreasing, producers of alcoholic beverages are now pushed to increase
the prices of alcoholic products to keep their level of revenues, which means that the price of alcohol is
growing naturally. Those facts raise a question about the role of excise duties on alcohol, whether it is
an effective tool for reducing alcohol consumption or just a fiscal tool, whose further increases might
lead to market distortions.

Keywords:

Alcohol, Consumption, Excise duties, Price affordability

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