Alcohol Price Floors and Externalities: The Case of Fatal Road Crashes

47 Pages Posted: 19 May 2022

See all articles by Marco Francesconi

Marco Francesconi

University of Essex; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)

Jonathan James

University of Bath

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Abstract

In May 2018, Scotland introduced a minimum unit price on alcohol. We examine the impact of this policy on traffic fatalities and drunk driving accidents. Using administrative data on the universe of vehicle collisions in Britain and a range of quasi-experimental modeling approaches, we do not find that the policy had an effect on road crash deaths and drunk driving collisions. The results are robust to several sensitivity exercises. There is no evidence of effect heterogeneity by income and other predictors of alcohol consumption or cross-border effects. A brief discussion of the policy implications of our findings is provided.

Keywords: motor vehicle collisions, minimum unit pricing, alcohol, externality, driving under the influence

JEL Classification: D12, D62, H23, K42, R41

Suggested Citation

Francesconi, Marco and James, Jonathan, Alcohol Price Floors and Externalities: The Case of Fatal Road Crashes. IZA Discussion Paper No. 15276, Available at SSRN: https://ssrn.com/abstract=4114860 or http://dx.doi.org/10.2139/ssrn.4114860

Marco Francesconi (Contact Author)

University of Essex ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom
+44 1206 873 534 (Phone)
+44 1206 873 151 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Jonathan James

University of Bath

Claverton Down
Bath, BA2 7AY
United Kingdom

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