Prohibition and market mechanisms : the case of alcohol consumption in Malta

Abstract

In this year's budget, the Maltese Government acknowledged the problem of alcohol abuse and the need to act, in order to minimize the negative externalities arising from the abuse of alcohol. For this reason excise duties on alcohol were revised, while measures are being taken to increase the legal age of alcohol consumption from sixteen to seventeen. The sum of €10,000 was dedicated to studying ways in which the laws regulating alcohol could be improved. Lastly, the resources and efforts made in educating people, especially youths, on the damages caused by excessive alcohol consumption are also to be improved. The abuse of alcohol is an issue being faced all over the world and not just in Malta. This dissertation aims to analyse the situation of excessive alcohol consumption, focusing on the current situation in Malta. By drawing from the experiences of other countries and taking into account the opinions of people who are active in the alcohol and leisure industries, this analysis explores possible ways of controlling this problematic situation.