Socio-economic constraints and the 'illusion of choice': impact of alcohol excise tax policy on public health and alcohol-dependent labourers

Abstract

This research investigates the intersection of European Union (EU) excise tax policies and their unintended consequences on public health and occupational safety. While excise taxes are framed as fiscal or health tools, they create a systemic "choice architecture" that disproportionately affects low-income, alcohol-dependent individuals. This study addresses a critical gap in human factors: the point where economic constraints remove human agency, forcing a shift from "beverage preference" to "pure alcohol volume maximization." Using a multi-faceted econometric approach, the study identifies an "income threshold of forced choice" across various EU jurisdictions. By calculating the Alcohol Volume Value (AVV) – the ratio of pure ethanol obtainable per unit of currency – the methodology demonstrates how current tax group structures (Directive 92/83/EEC) create "tax loopholes." These gaps allow high alcohol content products, such as fortified wines or high-strength beers, to remain the cheapest path to meeting biological dependency needs. Preliminary results indicate that as incomes drop below the "Choice Loss Threshold," consumers maximize ethanol intake, leading to significant cognitive decline and increased workplace hazards. The qualitative assessment of work safety reports correlates these fiscal disparities with a higher frequency of safety protocol breaches and industrial accidents. The paper concludes by proposing a revised taxation model unified by pure ethanol content. This approach aims to prevent the economic steering of vulnerable populations toward high-potency products, thereby enhancing labour market stability and safeguarding the human factor in industrial environments.

Keywords: Alcohol, Excise Tax, Low Incomes, Tax Efficiency

DOI: 10.54941/ahfe1007989