16 March 2020
Researchers:
Dr Luca Panzone, School of Natural & Environmental Sciences, Newcastle University
Dr Viviana Albani, Institute of Health and Society, Newcastle University
Key findings
- The alcoholic drinks market is characterised by an incomplete pass-through: for every £1 tax increase only £0.66 is passed onto the price.
- The pass-through varies by store formats and product volumes.
- The tax stimulates consumers to move away from products with a higher post-tax price to products with a lower post-tax price within a category.
- Increases in excise vary strategically to protect certain products (e.g. the most common size) over others.
- While the results support the idea that alcohol excises can change behaviour by increasing prices, they are less effective than they should be.
