How Different Income Groups Are Affected by Alcohol Market and Vodka Consumption Regulations Not Aimed at Price

This article analyzes how alcohol market regulations targeting vodka consumption in ways that do not impact prices affect various income groups in Russia. Its theoretical and empirical starting point consists of Russian and international studies that establish the role of restrictions on the time and conditions of alcohol sales, although they often omit the factor of price. The article’s innovative aspect lies in its comprehensive assessment of several non-price measures (morning, evening, and night time restrictions along with mandatory “dry days”) in combination with price instruments in order to provide a differentiated analysis of these measures by income level. The empirical data runs from 2011 to 2022. The Heckman instrumental variable model and the difference-in-differences method with Callaway and Sant’Anna estimates are used to account for selection and heterogeneity of effects. The results indicate that excessively strict morning restrictions (no sales before 2:00 PM) reduce vodka consumption only in below-average income groups, whereas limiting the start of sales to a more reasonable time (10:00 AM or 11:00 AM) affects all groups. Tightening evening restrictions significantly reduces consumption among low-income groups, but has little impact on affluent consumers. However, increasing the number of “dry days” has an ambiguous impact, which may indicate that demand is deferred or that these measures are intended primarily to limit alcohol consumption during holidays. The already confirmed correlations between vodka consumption and age, education, religious belief, marital status, and type of residence also appeared in this study. The overall conclusion is that temporarily limiting availability of alcohol, combined with targeted pricing instruments has the greatest potential to reduce harm among the most vulnerable segments of the population, while price-based interventions are most effective among the most affluent groups.

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