|
|
This is only a preview of the paper
Click here to register and get the full text.
Existing members click here to login
|
|
|
Alcohol consumption is associated with a wide range of adverse health and social consequences. ... population) meet the criteria for alcohol abuse or alcoholism. Prolonged alcohol abuse is known to cause liver damage, stroke, and cancer of the mouth and esophagus along with many other medical conditions. ... Around 20,000 people per year are killed in traffic accidents where alcohol is involved. The total economic cost of alcohol abuse, most of which are external costs, is estimated at $180 billion for the year 1998. Current taxes on alcoholic beverages are too low to cover the externalities associated with alcohol consumptions. Several studies have shown that increase in alcohol prices does reduce alcohol use. This paper explores the economic costs of alcohol as well as the effect of price changes and taxes on alcohol consumption.
An estimated 70% ($130 billion in 1998) of the estimated costs of alcohol abuse are attributed to lost productivity either through premature death or alcohol-related illness. Most of the remaining costs were expenditures for health care services to treat alcohol use disorders and the medical consequences of alcohol consumption (14%), property and administrative costs of alcohol related motor vehicle accidents (9%), and justice system costs of alcohol related crimes (4%). From this information it is evident that a large portion of the costs associated with alcohol abuse fall on those who are not alcohol abusers. In a 1998 study done by Harwood and associates, less than half (about 45%) of the costs were borne on alcohol abusers or their families, almost all of which was due to lost or reduced earnings. 20% of the costs associated with alcohol abuse was borne by the Federal government, three fourths of this cost was due to reduced tax revenue resulting from alcohol related productivity losses.
Approximate Word count = 1415
Approximate Pages = 5.7
(250 words per page double spaced)
|
|
|
|
|
|