Additional alcohol research using economic analyses is needed to complement the strides that have already been made. For example, recent studies have addressed how alcohol prices and taxes influence alcohol consumption, confirming earlier findings that consumers respond to changes in the price of beer, wine, and spirits. Discrepancy still exists, however, as to how large those effects may be. The weight of evidence suggests that the effects are relatively modest, with a 1-percent increase in price expected to lead to less than a 1-percent decrease in consumption. Other studies have addressed whether higher alcohol prices or taxes reduce drunk driving and alcohol-related traffic fatalities. Recent research confirms that higher taxes can contribute to these public health goals. Improvements in methodology and data collection should enable future research efforts to reconcile the magnitudes of the estimated effects of taxes on consumption with the larger estimated effects of taxes on traffic fatalities. In addition, future research will need to clarify whether increases in alcohol prices or taxes can help reduce youth drinking, a population that is at special risk for alcohol-related problems.
