When it comes to alcohol consumption the main concern had been the youth that are more prone to binge drinking that had led to vehicle accident in many occassions that was followed by violent crime. The other worry had been that since future drinking as well as smoking patterns could be formed at a younger age there had been a need for measures such as excise tax to detehr this early habbit forming pattern, as well habit forming behhaviours developed at such earl stage could also affect the human capital, as well as family formation. Therefore, findings indicate minimum purchase age for both products, as well hiking their price had some positive outcome that was not rigid as it is the case with the adult population that responds slowly to price hikes because both substances are addictive. Especially, the minimum pruchase age had shown good result in all localities that had been implemented effectively and the outcome will be enhanced when the minimum age is comlemented by price hike.
Other areas such as heavy realiance on alcholo consumption that will lead to alcoholism had been found to be different in nature since it does not respond to most of the measures that led to lable is as a mental illness that requires special attention because such consumers of alcohol could lose their control over their drinking habit. However, even such chronic problem had been found to respond to some economic incentives the cost of a drink could raise some kind of awarness that will lead to take actions. Addicts that will be froced to work twice just to afford to pay for their drinks might in the long run choose to halve the amount they are drinking, whereas in some experiments such as financial incentives for not drinking, or loss of certain priviliges such as driving when caugh beyond the alowed alchol limit had led to abstience showing that measures had been found to be effective in raising the safety and health of the public.
With the samit is the case with the adult population that responds slowly to price hikes because both substances are addictive. Especially, the minimum pruchase age had shown good result in all localities that had been implemented effectively and the outcome will be enhanced when the minimum age is comlemented by price hike.
Other areas such as heavy realiance on alcholo consumption that will lead to alcoholism had been found to be different in nature since it does not respond to most of the measures that led to lable is as a mental illness that requires special attention because such consumers of alcohol could lose their control over their drinking habit. However, even such chronic problem had been found to respond to some economic incentives the cost of a drink could raise some kind of awarness that will lead to take actions. Addicts that will be froced to work twice just to afford to pay for their drinks might in the long run choose to halve the amount they are drinking, whereas in some experiments such as financial incentives for not drinking, or loss of certain priviliges such as driving when caugh beyond the alowed alchol limit had led to abstience showing that measures had been found to be effective in raising the safety and health of the public.
With the same tocken, reducing the supply of both alcohol and tobacco did not show the same result where one supplier is forced to shut down because of lack of demand it is possible another supplier will get an incentive to enter the market. This so because so far prohibiting the cosnumption of both tobacco and alcohol is not found to be feasible when seen from economic grounds, as well as it will not be effective since the whole thing could go underground. When it comes to tobacco, for example, there were efforts to come with a crop substitution for the grower that are heavily dependant on tobacco so that it will be possible to bring the supply. But since the inentives of grwoing tobacco remain high no one will want to curtail the supply by growing substitute crops since the fiancial reward is not there at the same level. Other efforts such as banning the importing of both products had also failed to show satisfactory results.8
eneration the econmic problem could be amiliorated. Policy makers also had been worrying about the effect of higher tax rate on both products could affect government revenues, because it will directly affect the demand for the products. However, emprical findings (Chaloupka et al) had disputed such a stance by showing that the reduction that occurs on demand is always smaller when compared to the size of the revenue the taxing will generate the reason for that being since such consumers are addicted their response for the tax will not be swift where the elasticti of demand had been between 0.2 and 0.8. Another worry had been that whenever there is a tax hike the industry will pass the hike directly to the consumers and the industry could also hike the price that will result in coming down hard on the demand where the result would be if there is a 10 tax increase on these products the tax revenue will only be agumented by 7 only. Another concern had been that higher taxes that will result in hiking the price could result in smuggling which much truer in the case of tobacco that will result in making the consumption at a high level but it will further reduce government revenue. Merriaman et al had shown that in spite of this reality higher tax could still generate more revenue for the government if not dether the high consumption level that will require another measure which cracking down on criminal activities to attain both more revenue and public health improvement. In most poor countries such CR any tax increase will decrease to a good extent while at the same it raise governement revenue that could be spent to finance a given health package that cover a large number of people as such measures had proven to be effective in countries such as China.
Another concern of raising taxes is the impact could be harsh on the poorer population because it could end up claiming a higher share from the income of the poor than the rich. But outcome that was supported by emprical evidence had been that theConsuption level of poor people will go down quickly when compared to the rich that respond slowly to the task hike. In this regards findings had shown that, especailly tobacco product consumption of children and adolecnts also respond more quickly to tax hikes showing raising tax has its own advantage since it will make it difficult for the younger segement of the population to continue to smoke. Raising taxes had also affected a decrease on the number of tobacco related death whereas the figure globally stands at preventing between 5-16 million death for raising tax on tobacco product by 10.
When it comes to alcohol consumption the main concern had been the youth that are more prone to binge drinking that had led to vehicle accident in many occassions that was followed by violent crime. The other worry had been that since future drinking as well as smoking patterns could be formed at a younger age there had been a need for measures such as excise tax to detehr this early habbit forming pattern, as well habit forme tocken, reducing the supply of both alcohol and tobacco did not show the same result where one supplier is forced to shut down because of lack of demand it is possible another supplier will get an incentive to enter the market. This so because so far prohibiting the cosnumption of both tobacco and alcohol is not found to be feasible when seen from economic grounds, as well as it will not be effective since the whole thing could go underground. When it comes to tobacco, for example, there were efforts to come with a crop substitution for the grower that are heavily dependant on tobacco so that it will be possible to bring the supply. But since the inentives of grwoing tobacco remain high no one will want to curtail the supply by growing substitute cropsing behhaviours developed at such earl stage could also affect the human capital, as well as family formation. Therefore, findings indicate minimum purchase age for both products, as well hiking their price had some positive outcome that was not rigid as it is the case with the adult population that responds slowly to price hikes because both substances are addictive. Especially, the minimum pruchase age had shown good result in all localities that had been implemented effectively and the outcome will be enhanced when the minimum age is comlemented by price hike.
Other areas such as heavy realiance on alcholo consumption that will lead to alcoholism had been found to be different in nature since it does not respond to most of the measures that led to lable is as a mental illness that requires special attention because such consumers of alcohol could lose their control over their drinking habit. However, even such chronic problem had been found to respond to some economic incentives the cost of a drink coua
Another problem policymakers have to contend with in many localities that includes CR is that the policies they will introduce to dether the use of both tobacco and alchohol could cause permanent job loss in any given economy. However, findings indicatTherefore, when it comes to drinking it has some impact on the number of hours worked and the amount of earning that could suffer because of less productivity and absenteeism.Reference12
ld raise some kind of awarness that will lead to take actions. Addicts that will be froced to work twice just to afford to pay for their drinks might in the long run choose to halve the amount they are drinking, whereas in some experiments such as financie that falling demand on the consumption of both products might not mean there is a decline on the overall employment picture of countries such as CR. This is so because the possibilities are such that money spent on these substances could be spent on other items that will result in creating new jobs that can replace jobs lost in the tobaco and alcohol industry. The soulution had been for such problems as seen from what happened in the US if the policy implementation aims at a longer time span such as a generation the econmic problem could be amiliorated. Policy makers also had been worrying about the effect of higher tax rate on both products could affect government revenues, because it will directly affect the demand for the products. However, emprical findings (Chaloupka et al) had disputed such a stance by showing that the reduction that occurs on demand is always smaller when compared to the size of the revenue the taxing will generate the reason for that being since such consumers are addicted their response for the tax will not be swift where the elasticti of demand had been between 0.2 and 0.8. Another worry had been that whenever there is a tax hike the industry will pass the hike directly to the consumers and the industry could also hike the price that will result in coming down hard on the demand where the result would be if there is a 10 tax increase on these products the tax revenue will only be agumented by 7 only.
Another concern had been that higher taxes that will result in hiking the price could result in smuggling which much truer in the case of tobacco that will result in making the consumption at a high level but it will further reduce government revenue. Merriaman et al had shown that in spite of this reality higher tax could still generate more revenue for the government if not dether the high consumption level that will require another measure which cracking down on criminal activities to attain both more revenue and public health improvement. In most poor countries such CR any tax increase will decrease to a good extent while at the same it raise governement revenue that could be spent to finance a given health package that cover a large number of people as such measures had proven to be effective in countries such as China.
Another concern of raising taxes is the impact could be harsh on the poorer population because it could end up claiming a higher share from the income of the poor than the rich. But outcome that was supported by emprical evidence had been that theConsuption level of poor people will go down quickly when compared to the rich that respond slowly to the task hike. In this regards findings had shown that, especailly tobacco product consumption of children and adolecnts also respond more quickly to tax hikes showing raising tax has its own advantage since it will make it difficult for the younger segement of the population to continue to smoke. Raising taxes had also affected a decrease on the number of tobacco related death whereas the figure globally stands at preventing between 5-16 million death for raising tax on tobacco product by 10.
When it comes to alcohol consumption the main concern had been the youth that are more prone to binge drinking that had led to vehicle accident in many occassions that was followed by violent crime. The other worry had been that since future drinking as well as smoking patterns could be formed at a younger age there had been a need for measures such as excise tax to detehr this early habbit forming pattern, as well habit forming behhaviours developed at such earl stage could also affect the human capital, as well as family formation. Therefore, findings indicate minimum purchase age for both products, as well hiking their price had some positive outcome that was not rigid as it is the case with the adult population that responds slowly to price hikes because both substances are addictive. Especially, the minimum pruchase age had shown good result in all localities that had been implemented effectively and the outcome will be enhanced when the minimum age is comlemented by price hike.
Other areas such as heavy realiance on alcholo consumption that will lead to alcoholism had been found to be different in nature since it does not respond to most of the measures that led to lable is as a mental illness that requires special attention because such consumers of alcohol could lose their control over their drinking habit. However, even such chronic problem had been found to respond to some economic incentives the cost of a drink coual incentives for not drinking, or loss of certain priviliges such as driving when caugh beyond the alowed alchol limit had led to abstience showing that measures had been found to be effective in raising the safety and health of the public.
With the same tocken, reducing the supply of both alcohol and tobacco did not show the same result where one supplier is forced to shut down because of lack of demand it is possible another supplier will get an incentive to enter the market. This so because so far prohibiting the cosnumption of both tobacco and alcohol is not found to be feasible when seen from economic grounds, as well as it will not be effective since the whole thing could go underground. When it comes to tobacco, for example, there were efforts to come with a crop substitution for the grower that are heavily dependant on tobacco so that it will be possible to bring the supply. But since the inentives of grwoing tobacco remain high no one will want to curtail the supply by growing substitute crops since the fiancial reward is not there at the same level. Other efforts such as banning the importing of both products had also failed to show satisfactory results. This would mean that even if there is a need to introduce measures in order to bring down the consumption level of these two products by driectly impacting consumers decision making process about drinking there certain precautions that are necessary to take not to imoing on consumers enjoyment by using both produtcs in way that will not heavily interfer with their health that could tranlate into becoming burden for society. This means that if there is an obvious need to raise exicse taxes on both alcoholic beverages and tobacco products how low or high it should requires a close examining in order to avoid some of the negative effects discussed earlier. In a situation like this what economics call normative framework where comparing the internal costs usually borne by the drinkers themselves when the make decision to drink and exteranl cost that would occur when drikers create incidents. When seen from such perspective it is the external costs that should be major concerns to policy makers since consumer sovereignty should be taken into consideration. In this regard there had been interesta
Another problem policymakers have to contend with in many localities that includes CR is that the policies they will introduce to deter the use of both tobacco and alcohol could cause permanent job loss in any given economy. However, findings indicate that falling demand on the consumption of both products might not mean there is a decline on the overall employment picture of countries such as CR. This is so because the possibilities are such that money spent on these substances could be spent on other items that will result in creating new jobs that can replace jobs lost in the tobacco and alcohol industry. The solution for such problems as seen from what happened in the US had been that if the policy implementation aims at a longer time span such as a generation, it is possible to ameliorate the economic problem it would create. Policy makers also had been worrying about the effect of higher tax rate on both products could affect government revenues, because it will directly affect the demand for the products. However, empirical findings (Chaloupka et al) had disputed such a stance by showing that the reduction that occurs on demand is always smaller when compared to the size of the revenue the taxing will generate, the reason for that being since such consumers are addicted their response for the tax hike will not be swift where the elasticity of demand had been between 0.2 and 0.8.
Another worry had been that whenever there is a tax hike the industry will pass the hike directly to the consumers and the industry could also hike the price of the products that will result in coming down hard on the demand. The outcome of such combinations of measures is that if there is a 10 tax increase on these products, it is only possible to augment the total tax revenue by 7 only. Another concern had been that higher tax that will result in hiking the price could lead to smuggling, which is much truer in the case of tobacco that will result in making the consumption to remain at a high level, but it will further reduce government revenue. Merriaman et al had shown that in spite of this reality higher tax could still generate more revenue for the government if not deter the high consumption level that will require another measure, which could be cracking down on criminal activities to attain both more revenue and public health improvement. In most poor countries such CR any tax increase on tobacco and alcohol will decrease the consumption level to a good extent while at the same time it raises government revenue that could be spent to finance a given health package that covers a large number of people, as such measures had proven to be effective in countries such as China.
Another concern of raising taxes is the impact could be harsh on the poorer population because it could end up claiming a higher share of their income when compared to the rich. Nevertheless, outcome supported by empirical evidence had been that the consumption level of poor people will go down quickly when compared to the rich that would respond slowly to the tax and price hike. In this regard, findings had shown that, especially tobacco products consumption of children and adolescents also respond more quickly to tax hikes showing that raising tax has its own advantages since it will make it difficult for the younger segment of the population to continue smoking and drinking. Raising taxes had also decreased the number of tobacco related death where the figure globally stands it is possible to prevent between 5-16 million death for raising tax on tobacco product alone by 10.
When it comes to alcohol consumption, the main concern had been the youth that are more prone to binge drinking that had led to serious vehicle accidents in many occasions and what came second after that was violent crime committed by the youth. The other worry had been that since future drinking, as well as smoking patterns could be formed at a younger age there had been a need for measures such as higher excise tax to deter this early habit forming pattern, as well as habit forming behaviors developed at such early age could also affect the human capital and the pattern of family formation. Therefore, findings indicate minimum purchase age for both products, as well as hiking their price had some positive outcome ld raise some kind of awarness that will lead to take actions. Addicts that will be froced to work twice just to afford to pay for their drinks might in the long run choose to halve the amount they are drinking, whereas in some experiments such as financial incentives for not drinking, or loss of certain priviliges such as driving when caugh beyond the alowed alchol limit had led to abstience showing that measures had been found to be effective in raising the safety and health of the public.
With the same tocken, reducing the supply of both alcohol and tobacco did not show the same result where one supplier is forced to shut down because of lack of demand it is possible another supplier will get an incentive to enter the market. This so because so far prohibiting the cosnumption of both tobacco and alcohol is not found to be feasible when seen from economic grounds, as well as it will not be effective since the whole thing could go underground. When it comes to tobacco, for example, there were efforts to come with a crop substitution for the grower that are heavily dependant on tobacco so that it will be possible to bring the supply. But since the inentives of grwoing tobacco remain high no one will want to curtail the supply by growing substitute crops since the fiancial reward is not there at the same level. Other efforts such as banning the importing of both products had also failed to show satisfactory results. This would mean that even if there is a need to introduce measures in order to bring down the consumption level of these two products by driectly impacting consumers decision making process about drinking there certain precautions that are necessary to take not to imoing on consumers enjoyment by using both produtcs in way that will not heavily interfer with their health that could tranlate into becoming burden for society. This means that if there is an obvious need to raise exicse taxes on both alcoholic beverages and tobacco products how low or high it should requires a close examining in order to avoid some of the negative effects discussed earlier.
In a situation like this what economics call normative framework where comparing the internal costs usually borne by the drinkers themselves when the make decision to drink and exteranl costing findings where the external cost of per ounce of alcohol consumed could be around forty-eight cents in the US and it is double to what the federal tax per ounce that could be applicable to CR case to. This is so because for both smokers and drinker most health related costs and death or unproductivity are borne by the smokers themselves, which would mean it will not cause harm to anyone else similar to an accident a drunk driver could cause to an injured victim. That is one of the reason why advocates are saying the current excise that will take many factors into consideration might not be adequate enoug to bring down the number of people that are dependant on habit forming products, because as it is now the cost of injuries could be around sixty-cents that would occur when drikers create incidents. When seen from such perspective it is the external costs that should be major concerns to policy makers since consumer sovereignty should be taken into consideration. In this regard there had been interesting findings where the external cost of per ounce of alcohol consumed could be around forty-eight cents in the US and it is double to what the federal tax per ounce that could be applicable to CR case to. This is so because for both smokers and drinker most health related costs and death or unproductivity are borne by the smokers themselves, which would mean it will not cause harm to anyone else similar to an accident a drunk driver could cause to an injured victim. That is one of the reason why advocates are saying the current excise that will take many factors into consideration might not be adequate enoug to bring down the number of people that are dependant on habit forming products, because as it is now the cost of injuries could be around sixty-cents.
The same applies to the productivty level of workers that are consuming both substances that is known to impair normal productivity level. Because of that there are kind bans in the workplace where alcohol consumption is fobidden, where the new trends had been in the develped regions to ban smoking from workplace because of the effect second hand smoke had on health, although smoking dose not affect productivity unless it is at a chronic stage where the smoker might have developed some kind of cancer.