EI Feature: "Lockdown Drinking: The Sobering Effect of Price Controls in a Pandemic"
The EI Editors invite you to browse the October 2024 issue featured article:
"Lockdown drinking: The sobering effect of price controls in a pandemic"
- Farasat A. S. Bokhari, Loughborough University, Loughborough, UK
- Ratula Chakraborty, University of East Anglia, Norwich, UK
- Paul W. Dobson, University of East Anglia, Norwich, UK
- Marcella Morciano, Università degli Studi di Modena e Reggio Emilia, and Research Centre for the Analysis of Public Policies, Modena, Italy
ABSTRACT: Lockdown restrictions reduce the spread of COVID-19 but disrupt livelihoods and lifestyles that can induce harmful behavior changes, including problematic lockdown drinking fueled by cheap alcohol. Exploiting differences amongst the four constituent countries of the United Kingdom, we use triple difference analysis on alcohol retail sales to examine the efficacy of minimum unit pricing as a price control device to help curb excessive consumption in a pandemic setting. We find the policy is remarkably effective and well-targeted in reducing demand for cheap alcohol, with minimal spillover effects, and consumers overall buying and spending less.
First published: 05 June 2024