National Drug Strategy
National Drug Strategy

The avoidable costs of alcohol abuse in Australia and the potential benefits of effective policies to reduce the social costs of alcohol

9.4 The macroeconomic impact of alcohol interventions

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Proposals to tighten alcohol policies almost inevitably meet opposition on the grounds that they will have a negative impact on, among other things, employment and growth. These objections are usually based on na´ve models which do not take account of the changes in consumer spending patterns which would result from the new alcohol policies. Sophisticated macroeconomic modelling, on the lines undertaken in relation to tobacco by Junor et al. (2004), is required to indicate the true impacts on employment, economic growth and the balance of payments.

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