Abstract

To reduce alcohol consumption, in 2018 the Lithuanian Government introduced new restrictions on alcohol sales time, consumer age, and alcohol advertising. These restrictions apply to the entire population, regardless of alcohol consumption behavior. Such actions of the government were provoked by the scale of the problem; according to the data provided by the World Health Organization and the European Union Commission, Lithuania sits among the leading countries in alcohol consumption.The policies taken by the government to reduce alcohol consumption are described by many economists as paternalistic, as they reduce an individual’s freedom of decision. The aim of this paper is to evaluate the changes in alcohol consumption behavior after the regulatory measures entered into force and the public attitude towards these measures based on research results.This article presents the results of a study first conducted in December 2016 by the researchers of the Faculty of Economics of Vilnius University and the representatives of the Lithuanian Business Confederation*. The aim of the study was to distinguish the different groups of alcohol consumers and their alcohol consumption behavior and attitudes towards the alcohol restriction policies.** To achieve this aim, an analysis of scientific papers, a population survey, and statistical analysis methods were used.The authors conclude that alcohol restriction policies, met with a relatively favorable public attitude, may have adjusted levels of alcohol consumption and its patterns, but the increase in the number of young people among alcohol consumers is not in line with the expected policy outcomes. The measures adopted did not encourage respondents to give up alcohol in the longer term (12 months).

Highlights

  • Behavioral economics have provided new public policies and interpretations over the past thirty years

  • In assessing the answers of the respondents by consumer groups, the general tendencies remain unchanged, but the groups of regular drinkers and binge drinkers are found to be more negative about the introduction of all measures; drinkers are negative regarding the time limits for selling alcoholic beverages (67% in 2018, 63% in 2019) and the increase in excise duties (79% in 2018 and 68% in 2019)

  • The number of those who gave neutral evaluations increased in the group of regular alcohol users, while the neutral evaluation among binge drinkers increased (28% in 2018, 49% in 2019) and the negative evaluation concerning age restrictions decreased (37% in 2018, 18% in 2019)

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Summary

Introduction

Behavioral economics have provided new public policies and interpretations over the past thirty years. The Lithuanian government pays a lot of attention to reducing alcohol consumption and pursues an active policy of cutting down alcohol accessibility. Since 1995, the government has been regulating alcohol trade by reducing alcohol advertising and availability. In the summer of 2017, the Seimas approved new amendments to the Law on Alcohol Control, which came into effect beginning with the year 2018 and stated that persons under the age of 20 will not be able to purchase, possess, or consume alcoholic beverages. The sales time for alcoholic beverages was reduced on weekdays and Saturdays from 10 am to 8 pm, and on Sundays from 10 am to 3 pm; alcohol advertising was completely banned. The sale and consumption of alcohol was declared prohibited during sport events in the premises where they take place

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