Raising alcohol prices. Would drinking by high school students be lower if alcohol prices were higher? Do peers cause cause others to drink more often or heavier?

Study

Researchers asked these questions. They used data from nation-wide federal research. The price of alcohol? The researchers found that peers were important in the choice to drink. But they had no real impact on the frequency of drinking. That included heavy episodic or so-called binge drinking.

So the price of alcohol had no real impact on the drinking of high school students.

Key Findings

• • Peer drinking has a great effect on the decision of high school students to drink.
  • The price of alcohol doesn’t affect the quantity or frequency of drinking by high school students.

They concluded that “no significant impact on underage drinking will result from low-tax states’ increasing excise taxes on alcohol.” Perhaps that’s because most teens get their alcohol from others.

These findings are important for policies to reduce underage drinking.

Resources

Web

• • Alcohol Price and Binge Drinking. Connected?
  • Alcohol Prices and Harm from Alcohol Abuse
  • Increasing Alcohol Price Unlikely to Reduce Consumption
  • Alcohol Availability and Alcohol-Related Harm
  • Social Norms Marketing Reduces High School Drinking
  • Drinking and Driving by U.S. High School Students

Science Papers

• • Gruenewald, P., et al. Alcohol price, beverage quality, and the demand for alcohol. Alco Clin Exper Res.
  • Manning, W. The demand for alcohol. The differential response to price. J Hlth Econ, 14(2), 123-148.
  • Nelson, J. Meta-analysis of alcohol price and income elasticities. Hlth Econ Rev, 3, 17.
  • Ornstein, S., and Levy, D. Price and income elasticities of demand for alcoholic beverages. Rec Adv Alco, 1, 303-45.
  • Ruhm, C., et al. What U.S. Data Should be Used to Measure the Price Elasticity of Demand for Alcohol? Paper #17578.

Source

• • Ajilore O., et al. Alcohol consumption by youth. Peers, parents, or prices? Econ Hum Behav, 23, 76-83.