Next Article in Journal
Effect of Discontinuation of Fluoride Intake from Water and Toothpaste on Urinary Excretion in Young Children
Next Article in Special Issue
Prevalence of Children with Severe Fetal Alcohol Spectrum Disorders in Communities Near Rome, Italy: New Estimated Rates Are Higher than Previous Estimates
Previous Article in Journal
Study on the Association between Ambient Air Pollution and Daily Cardiovascular and Respiratory Mortality in an Urban District of Beijing
Previous Article in Special Issue
Heavy Drinking Is Associated with Poor Blood Pressure Control in the REasons for Geographic and Racial Differences in Stroke (REGARDS) Study
Article Menu

Export Article

Open AccessArticle
Int. J. Environ. Res. Public Health 2011, 8(6), 2124-2131; doi:10.3390/ijerph8062124

Is the Demand for Alcoholic Beverages in Developing Countries Sensitive to Price? Evidence from China

College of Economics and Management, China Agricultural University, No. 17, Qinghuadong Road, Haidian District, Beijing, 100083, China
School of Economics, Shanghai University of Finance and Economics, 777 Guoding Road, Shanghai 200433, China
Author to whom correspondence should be addressed.
Received: 16 May 2011 / Revised: 1 June 2011 / Accepted: 2 June 2011 / Published: 9 June 2011
(This article belongs to the Special Issue Alcohol and Public Health)
View Full-Text   |   Download PDF [204 KB, uploaded 19 June 2014]   |  


Economic literature in developed countries suggests that demand for alcoholic beverages is sensitive to price, with an estimated price elasticity ranging from −0.38 for beer and −0.7 for liquor. However, few studies have been conducted in developing countries. We employ a large individual-level dataset in China to estimate the effects of price on alcohol demand. Using the data from China Health and Nutrition Survey for the years 1993, 1997, 2000, 2004 and 2006, we estimate two-part models of alcohol demand. Results show the price elasticity is virtually zero for beer and only −0.12 for liquor, which is far smaller than those derived from developed countries. Separate regressions by gender reveals the results are mainly driven by men. The central implication of this study is, while alcohol tax increases can raise government revenue, it alone is not an effective policy to reduce alcohol related problems in China. View Full-Text
Keywords: alcoholic beverage; drinking; alcohol demand; price elasticity; beer; liquor alcoholic beverage; drinking; alcohol demand; price elasticity; beer; liquor

This is an open access article distributed under the Creative Commons Attribution License (CC BY 3.0).

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Tian, G.; Liu, F. Is the Demand for Alcoholic Beverages in Developing Countries Sensitive to Price? Evidence from China. Int. J. Environ. Res. Public Health 2011, 8, 2124-2131.

Show more citation formats Show less citations formats

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Int. J. Environ. Res. Public Health EISSN 1660-4601 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top