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Alcohol taxes and birth outcomes
1Department of Community and Preventive Medicine, The University of Rochester School of Medicine and Dentistry, Rochester, NY 14642, USA. ning_zhang@urmc.rochester.edu
Summary
Increasing alcohol taxes can improve infant health by reducing low-birth-weight incidence. Higher taxes on beer, wine, and liquor discourage binge drinking, showing a positive intergenerational impact.
Area of Science:
- Public Health
- Health Economics
- Epidemiology
Background:
- Alcohol consumption during pregnancy poses significant risks to infant health.
- Alcohol taxation is a public health policy tool with potential economic implications.
- Understanding the link between alcohol policy and birth outcomes is crucial for preventative strategies.
Purpose of the Study:
- To investigate the association between alcohol taxation, maternal drinking behaviors, and infant health outcomes.
- To quantify the impact of alcohol taxes on the incidence of low-birth-weight infants.
- To determine the price elasticity of binge drinking in response to alcohol taxes.
Main Methods:
- Utilized merged data from US Natality Detailed Files and the Behavioral Risk Factor Surveillance System (1985-2002).
- Incorporated state-level tax data for beer, wine, and liquor.
- Employed state- and year-fixed-effect reduced-form regression analysis.
Main Results:
- A $0.01 increase in beer taxes was associated with a 1-2 percentage point decrease in low-birth-weight incidence.
- Tax elasticity for binge drinking was -2.5 for beer and wine taxes.
- Tax elasticity for binge drinking was -9 for liquor taxes.
Conclusions:
- Alcohol taxation demonstrates a significant potential to reduce adverse infant health outcomes like low-birth-weight.
- Increased alcohol taxes effectively decrease binge drinking participation, highlighting their role in maternal and child health.
- These findings underscore the intergenerational benefits of implementing and increasing alcohol taxes.
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