ENG ELC 220 Lecture Notes - Lecture 6: Economic Surplus
1 Nov 2020
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Alcohol consumption is very common in the netherlands. Consumption of alcohol is associated with positive and negative effects for society. Question 2 entails a prospective analysis of changes in all societal domains associated with alcohol after implementation of new policies. The three new policies considered are: an increase of excise taxes with 50% and 200%, a reduction in outlet density of 10% and 25%, a total ban on advertisements (mediaban) for alcohol. Within this scba, projections for a period of 50 years after implementation of new policy measures are made, using modelling techniques. This period was chosen to also include the long term effects of alcohol on health in the analysis. Although some obvious benefits (i. e. income from excise duties) are present, alcohol is associated with a net cost to society. This net cost is estimated to be between 2. 3 and 2. 9 billion euro for the year 2013. Costs are mainly borne by consumers of alcohol, following costs of:
