The idea of using tax increases to reduce alcohol use raises concerns that such a policy may cause consumers to use less alcohol but increase marijuana use in response to increased beverage prices. Two recent studies have examined this issue, with contrasting results. One study found that alcohol and marijuana were economic complements (Pacula 1998), meaning that the goods tend to be used together, such as gin and tonic water. Thus, the researchers estimated that doubling the beer tax would reduce the use of marijuana as well as alcohol. This finding should be viewed with caution, however, because States with lower beer taxes may also have more tolerant social attitudes toward other substance use.
