Background
Alcohol taxes
The price elasticity of demand for alcoholic beverages
The goals of this study
Alcohol consumption in Taiwan
Methods
Data
Type of alcoholic products | Estimated expenditure elasticity | Estimated price elasticity | |||
---|---|---|---|---|---|
beer | wine | whisky | brandy | ||
beer | 0.855** (21.987) | −0.820** (−19.327) | 0.014 (1.662) | −0.044** (−3.904) | −0.002 (−0.153) |
wine | 2.207** (7.057) | −0.595 (−1.422) | −0.955** (−4.414) | −0.089 (−0.681) | −0.560** (−3.775) |
whisky | 1.051** (6.331) | −0.609** (−3.448) | 0.0005 (0.014) | −0.587** (−5.854) | 0.147* (1.950) |
brandy | 1.978** (7.034) | −0.931** (−3.194) | −0.142** (−3.619) | 0.061 (0.823) | −0.958** (−7.258) |
Results
The elasticity of wine, beer, whisky and brandy
The effects of a 20%, 40%, or 60% welfare surcharge
Planning section welfare surcharge | Type of alcohol | Price changes(%) | Self-own and cross influence | Consumption changes(%) | Pure alcohol consumption (liters) |
---|---|---|---|---|---|
Impose a 20% welfare surcharge in accordance with the excise tax amount | beer | 9.99 | beer | −8.19 | −2,014,100 |
wine | −5.95 | −182,200 | |||
whisky | −6.08 | −418,800 | |||
brandy | −9.30 | −160,200 | |||
wine | 8.36~10.45 | wine | −7.98~−9.98 | −244,300~ −305,600 | |
brandy | −1.19~−1.49 | −20,500~−25,600 | |||
whisky | 0.004~0.005 | 260~340 | |||
beer | 0.001 | 243 | |||
whisky | 4.77 | whisky | −2.80 | −193,300 | |
brandy | 0.29 | 5,000 | |||
beer | −0.21 | −5,160,000 | |||
wine | −0.42 | −13,000 | |||
brandy | 2.21 | brandy | −2.11 | −36,400 | |
wine | −1.23 | −37,800 | |||
whisky | 0.32 | 22,300 | |||
beer | −0.005 | −1,400 | |||
Impose a 40% welfare surcharge in accordance with the tax amount | beer | 19.98 | beer | −16.38 | −4,028,300 |
wine | −11.9 | −364,400 | |||
whisky | −12.16 | −837,600 | |||
brandy | −18.61 | −320,400 | |||
wine | 16.73~20.91 | wine | −15.97 ~ −19.97 | −489,000~ −611,600 | |
brandy | −2.39~−2.98 | −41,100~−51,300 | |||
whisky | 0.008~0.01 | 520~680 | |||
beer | 0.002~0.003 | 490~730 | |||
whisky | 9.55 | whisky | −5.61 | −386,600 | |
brandy | 0.58 | 9,900 | |||
beer | −0.42 | −103,200 | |||
wine | −0.85 | −26,000 | |||
brandy | 4.42 | brandy | −4.23 | −72,900 | |
wine | −2.47 | −22,700 | |||
whisky | 0.65 | 44,700 | |||
beer | −0.01 | −2,800 | |||
Impose a 60% welfare surcharge in accordance with the tax amount | beer | 29.97 | beer | −24.57 | −6,042,300 |
wine | −17.85 | −546,600 | |||
whisky | −18.24 | −1,256,400 | |||
brandy | −27.91 | −480,600 | |||
wine | 25.095~31.36 | wine | −23.95~−29.95 | −733,400~−917,200 | |
brandy | −3.58~−4.47 | −61,600~−76,900 | |||
whisky | 0.012~0.015 | 810 | |||
beer | 0.003~0.004 | 730~1,100 | |||
whisky | 14.32 | whisky | −8.41 | −579,900 | |
brandy | 0.87 | 15,000 | |||
beer | −0.63 | −154,800 | |||
wine | −1.27 | −39,000 | |||
brandy | 6.63 | brandy | −6.35 | −109,200 | |
wine | −3.70 | −113,400 | |||
whisky | 0.97 | 66,900 | |||
beer | −0.02 | −4,200 |
Planning section welfare surcharge | Type of alcohol | Consumption (million liters) | Pure alcohol consumption (million liters) | Consumption changes (%) | Total revenues for a welfare surcharge on alcoholic products (NT$100 million) |
---|---|---|---|---|---|
Impose a 20% welfare surcharge in accordance with the tax amount | beer | −47.61 | −2.14 | −8.71 | 25.94 |
wine | −3.18~−3.59 | −0.47~−0.53 | −15.58~−17.58 | 2.82~3.61 | |
whisky | −1.73 | −0.74 | −10.83 | 2.93 | |
brandy | −0.49 | −0.21 | −12.30 | 0.70 | |
Total | −53.03~−53.43 | −3.56~−3.63 | −9.034 | 32.39~33.18 | |
Impose a 40% welfare surcharge in accordance with the tax amount | beer | −91.86 | −4.13 | −16.80 | 47.28 |
wine | −6.81~−7.69 | −1.02~−1.15 | −33.39~−37.68 | 4.27~5.71 | |
whisky | −3.47 | −1.49 | −21.67 | 5.02 | |
brandy | −0.68~−0.87 | −0.29~−0.37 | −17.02~−21.79 | 1.25~1.32 | |
Total | −95.37~ −96.43 | −6.93~ −7.14 | −16.24~−16.42 | 57.82~59.33 | |
Impose a 60% welfare surcharge in accordance with the tax amount | beer | −128.99 | −5.8 | −23.60 | 65.13 |
wine | −10.22~−11.54 | −1.53~ −1.73 | −50.1~−56.52 | 4.47~6.41 | |
whisky | −5.20~−5.21 | −2.23~ −2.24 | −32.51~−32.51 | 6.48 | |
brandy | −1.30~−1.34 | −0.55~−0.57 | −32.68~−33.45 | 1.59~.162 | |
Total | −145.73~−147.08 | −10.11~−10.34 | −24.82~−25.05 | 77.67~79.73 |