On the Effects of the 2018 Alcohol Act Reform

Abstract

This report examines how different aspects of alcohol legislation affect the consumption of alcohol. The analysis focuses particularly on the 2018 reform of the Alcohol Act in Finland, which allowed the retail sales of alcoholic beverages and mixed drinks with a strength of up to 5.5% ABV outside the Alko monopoly. Additionally, the study looks at the effects of the 2012 increase in alcohol tax on alcohol consumption. The research utilizes extensive product- and store-specific data from grocery retailers as well as from Alko. Product- and region-specific sales data from Sweden’s Systembolaget acts as a control group. The results of the 2018 reform indicate that the newly deregulated drinks were consumed in significantly higher levels immediately after the reform. However, overall alcohol consumption in Finland does not appear to have increased, as the higher consumption of the deregulated drinks was offset by reduced consumption of other alcoholic drinks. No statistically significant changes in alcohol consumption were observed following the 2012 tax increase, although the result is statistically imprecise.

Publication Information

Kosonen, T., Jysmä, S., Stefánsson, A., & Worku, L. (2024), Vuoden 2018 alkoholilain uudistuksen vaikutuksista, VATT Tutkimukset 196.

• ISSN: 2984-2158 (Online)
• ISBN: 978-952-209-220-5 (Online)
• JEL: H21, I18
• Publication in PDF-format