Letter from Russia: minimal price for vodka established in Russia from 1 January 2010

Pricing as a means of controlling alcohol consumption

BACKGROUND

Reducing the affordability of alcohol, by increasing its price, is the most effective strategy for controlling alcohol consumption and reducing harm.

SOURCES OF DATA

We review meta-analyses and systematic reviews of alcohol tax/price effects from the past decade, and recent evaluations of tax/price policies in the UK, Canada and Australia.

AREAS OF AGREEMENT

While the magnitudes of price effects vary by sub-group and alcoholic beverage type, it has been consistently shown that price increases lead to reductions in alcohol consumption.

AREAS OF CONTROVERSY

There remains, however, a lack of consensus on the most appropriate taxation and pricing policy in many countries because of concerns about effects by different consumption level and income level and disagreement on policy design between parts of the alcoholic beverage industries.

GROWING POINTS

Recent developments in the research highlight the importance of obtaining accurate alcohol price data, reducing bias in estimating price responsiveness, and examining the impact on the heaviest drinkers.

AREAS TIMELY FOR DEVELOPING RESEARCH

There is a need for further research focusing on the substitution effects of taxation and pricing policies, estimation of the true tax pass-through rates, and empirical analysis of the supply-side response (from alcohol producers and retailers) to various alcohol pricing strategies.

Alcohol Consumption in Russia and Some Aspects of Public Health

CONTEXT

The problem of alcohol misuse in Russia is immense; but nonetheless there is a tendency to exaggerate it, which is evident for inside observers. Such exaggeration tends to veil shortcomings of the health care system with responsibility shifted onto the patients, that is, self-inflicted diseases caused by excessive alcohol consumption. The aim of this report is to draw attention to the above-mentioned and other problems related to the alcohol consumption in Russia, not clearly perceptible from the literature, e.g. toxicity of some legally sold alcoholic beverages.

EVIDENCE ACQUISITION

This report is based on a review of literature and observations by the author during the period 1970 - 2014.

RESULTS

Predictable increase of alcohol consumption after the anti-alcohol campaign facilitated the economical reforms of the early 1990s: workers and some intelligentsia did not oppose privatizations of state-owned enterprises partly due to their drunkenness, involvement in workplace theft and use of equipment for profit, which was often tolerated by the management at that and earlier time.

CONCLUSIONS

Last time, a gradual change of the alcohol consumption pattern in Russia has been noticed: less heavy binge drinking of vodka, fortified wine and surrogates; more moderate consumption of beer.

Some Aspects of Nonbeverage Alcohol Consumption in the Former Soviet Union

Toxicity of some legally sold alcoholic beverages has contributed to enhanced mortality in Russia since 1990. Widespread drunkenness during the early 1990s facilitated privatization of economy: workers and some intelligentsia did not oppose privatizations because of drunkenness and involvement in illegal activities. Apparently, alcohol consumption and heavy binge drinking have been decreasing in Russia since approximately the last decade. Exaggeration of alcohol-related problems tends to veil shortages of the health care system. There are motives to exaggerate consumption of nonbeverage alcohol in order to veil the problem of toxicity of some legally sold beverages. It is essential to distinguish between legally and illegally sold rather than between recorded and unrecorded alcohol because sales of poor-quality alcoholic beverages in legally operating shops and kiosks occurred generally with knowledge of authorities.

Price elasticities of alcohol demand: evidence from Russia

In this paper, we estimate price elasticities of demand of several types of alcoholic drinks, using 14 rounds of data from the Russia Longitudinal Monitoring Survey-HSE, collected from 1994 until 2009. We deal with potential confounding problems by taking advantage of a large number of control variables, as well as by estimating community fixed effect models. All in all, although alcohol prices do appear to influence consumption behaviour in Russia, in most cases the size of effect is modest. The finding that two particularly problematic drinks-cheap vodka and fortified wine-are substitute goods also suggests that increasing their prices may not lead to smaller alcohol consumption. Therefore, any alcohol pricing policies in Russia must be supplemented with other measures, such as restrictions on numbers of sales outlets or their opening times.

Unrecorded alcohol consumption in Russia: toxic denaturants and disinfectants pose additional risks

In 2005, 30% of all alcohol consumption in Russia was unrecorded. This paper describes the chemical composition of unrecorded and low cost alcohol, including a toxicological evaluation. Alcohol products (n=22) from both recorded and unrecorded sources were obtained from three Russian cities (Saratov, Lipetsk and Irkutsk) and were chemically analyzed. Unrecorded alcohols included homemade samogons, medicinal alcohols and surrogate alcohols. Analysis included alcoholic strength, levels of volatile compounds (methanol, acetaldehyde, higher alcohols), ethyl carbamate, diethyl phthalate (DEP) and polyhexamethyleneguanidine hydrochloride (PHMG). Single samples showed contamination with DEP (275–1269 mg/l) and PHMG (515 mg/l) above levels of toxicological concern. Our detailed chemical analysis of Russian alcohols showed that the composition of vodka, samogon and medicinal alcohols generally did not raise major public health concerns other than for ethanol. It was shown, however, that concentration levels of DEP and PHMG in some surrogate alcohols make these samples unfit for human consumption as even moderate drinking would exceed acceptable daily intakes.

Alcohol tax, consumption and mortality in tsarist Russia: is a public health perspective applicable?

BACKGROUND

The public health perspective on alcohol comprises two main tenets: (i) population drinking impacts on alcohol-related harm and (ii) population drinking is affected by the physical and economic availability of alcohol, where alcohol taxes are the most efficient measure for regulating consumption. This perspective has received considerable empirical support from analyses of contemporary data mainly from Europe and North America. However, as yet, it has been little examined in a historical context. The aims of the present article are to use data from tsarist Russia to explore (i) the relation between changes in the tax on alcohol and per capita alcohol consumption and (ii) the relation between per capita alcohol consumption and alcohol mortality.

METHODS

The material comprised annual data on alcohol taxes, alcohol consumption and alcohol mortality. The tax and alcohol consumption series spanned the period 1864-1907 and the mortality data covered the period 1870-94. The data were analysed by estimating autoregressive integrated moving average models on differenced data.

RESULTS

Changes in alcohol taxes were significantly associated with alcohol consumption in the expected direction. Increases in alcohol consumption, in turn, were significantly related to increases in alcohol mortality.

CONCLUSION

This study provides support for the utility of the public health perspective on alcohol in explaining changes in consumption and alcohol-related harm in a historical context. We discuss our findings from tsarist Russia in the light of experiences from more recent alcohol policy changes in Russia.