Binge Drinking In Australia

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Alcohol consumption is an issue within Australian society, with youth binge drinking over the past decade creating economic costs. The government has implemented measures to address this issue. One measure is the alcopops tax, which has experienced moderate success but also limitations. Alternative measures may more effectively reduce youth alcohol consumption, such as setting a floor price and increasing the minimum legal drinking age (MLDA). Overall, the government can use various policies to reduce youth binge drinking. Australian youth binge drinking has resulted in various economic costs. Figure 1 indicates similar rates of minors engaging in weekly high-risk drinking as individuals over 25. Furthermore, risky drinking habits are substantially …show more content…

These include the National Binge Drinking Campaign (Department of Health, 2008), a zero-alcohol policy for learner and provisional drivers, and the prohibition of supplying alcohol to minors (Gordon, Howard & Jones 2014). The alcopops tax aims to reduce alcopops consumption, thus targeting youth binge drinkers as many "prefer [alcopops] over other alcoholic beverages" (Digiusto & Doran, 2011, para.2). This is evidenced by Figure 3, which indicates that high-risk youth drinkers are more likely to consume alcopops than older individuals. Therefore, the government has implemented various policies to reduce youth binge drinking, including the alcopops …show more content…

Economic efficiency exists when economic surplus, and thus the net benefit to society, is maximised. However, producers generally "make decisions based on their own private interests" (Department of Treasury, 2010, para.2). Therefore, economic inefficiency occurs when a negative externality results in a difference between private production costs and the social cost. The market supply curve (S1) in Figure 4 represents the private costs alcopops producers must bear. The second supply curve (S2) reflects the social cost of alcopops, which is the sum of private production costs and previously outlined economic costs. As Figure 4’s yellow triangle indicates, deadweight loss occurs at S1; the net benefit to society is not maximised as marginal costs exceed marginal benefits. Clearly economic inefficiency is undesirable. The government can correct this issue using a variety of methods, such as implementing a

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