British journal of addiction
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The aim of national alcohol and tobacco preventive health policy is to reduce consumption in order to reduce harm. However, the level of domestic consumption depends upon the interaction of international demand and supply and the development of international trade policy. ⋯ Economic models of the links between trade flows, quantities consumed and health effects are then outlined as a preliminary step towards identifying the complex interaction between alcohol and tobacco trade and production, consumption, health and welfare. It is shown that consideration of the economic trade links are an important factor in the development of international and domestic health policy.
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The changing pattern of consumption of alcoholic beverages in Ireland and the association between this and the trend in alcohol-related problems are examined. As a result of a relatively low price and high income elasticities of demand for alcoholic beverages, the high level of taxation of alcohol in Ireland has resulted in an exceptionally large proportion of income being devoted to purchasing them rather than to a fall in their consumption. ⋯ Further pressure to reduce the level of taxation is coming from the move to harmonize taxes across EC member states. The limitations of taxation policy as a means of controlling the consumption of demerit goods in a small economy are clearly illustrated by the Irish experience.
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This article shows the contribution of economics to debates about prevention policy. The arguments used by various pressure groups favouring or opposing more effective prevention policies need to be subject to critical scrutiny and empirical testing. ⋯ The supply side of the market in the form of the alcohol and tobacco industries is analysed using a structure-performance framework. Consideration is given to how firms might respond to prevention policies through, say, lobbying or shifting higher taxes to suppliers or by diversifying into new markets.