The effects of alcohol taxation and pricing policies on vodka sales in Russia

Background: The majority of aggregate econometric studies indicate that higher taxes and real prices on alcohol significantly reduce the alcohol consumption. Objectives: To estimate the effects of recent alcohol taxation and pricing policies on vodka sales per capita in Russia. Methods: Trends in the affordability of vodka, excise tax rates on vodka, real and minimum price of vodka and per capita vodka sales between 2010 and 2015, were compared. Results: A Pearson’s correlation analysis suggests a positive and statistically significant association between the affordability of vodka and per capita vodka sales. The association between vodka sales and excise tax rates on vodka, the real price of vodka and minimum price of vodka was negative. Conclusions: These findings indicate that pricing policy has potential to reduce binge drinking of vodka in Russia.