PRICE OF ALCOHOL IN EU MEMBER STATES – AFFORDABILITY OF ALCOHOLIC PRODUCTS AND ROLE OF EXCISE DUTIES
This research paper focuses on alcoholic beverages and their price affordability between 2000-2016 in the member states of the European Union. Based on the data from OECD, WHO, Eurostat, and the European Commission, the paper primarily discusses development of prices and consumption of alcoholic products, level of excise duties, and the development of average wages. Overall alcohol consumption has decreased in most EU member states over the past two decades, even though price affordability has increased due to relatively dynamic development of average wages. As consumption of alcohol products is decreasing, producers of alcoholic beverages are now pushed to increase the prices of alcoholic products to keep their level of revenues, which means that the price of alcohol is growing naturally. Those facts raise a question about the role of excise duties on alcohol, whether it is an effective tool for reducing alcohol consumption or just a fiscal tool, whose further increases might lead to market distortions.