Fiscal policy scenarios have shown that taxation and pricing policies are cost-effective ways to reduce the negative health and social impacts caused by alcohol consumption while generating revenue. To make informed policy decisions and determine appropriate tax rates, it is important to understand how changes in price affect consumer demand.
In such a context, this study explores the price and income sensitivity of alcohol consumption and substitutions across different types of liquor among households in different income groups and urban/rural sectors. By estimating elasticities, the study aims to assess how changes in pricing and taxation policies may impact alcohol consumption patterns.
