THE ECONOMICS OF ALCOHOL

The use of economic arguments with regard to four aspects of alcohol p olicy is described and discussed. The first aspect is the impact of a potential reduction in alcohol consumption on employment by alcohol pr oduction and trade. It is shown that employment ir quite independent o f the level of consumption. The second aspect is the opportunity for s erving the public health and state finance interests at the same time by developing alcohol taxation. The third aspect is the relationship b etween the public revenue from alcohol and the public costs for alcoho l-related problems. A ''polluter pays'' principle with regard to alcoh ol would mean higher taxation of alcoholic beverages. The fourth aspec t is the need for cost-effectiveness analyses to support the choices b y the decision makers between different alcohol policy options. It is concluded that such analyses could have impact on the priorities in pu blic health policy on alcohol.