What is a result of government regulation of alcohol consumption?

Taxation, a regulatory method employed by government, leads to an increase in the price of alcohol, which reduces alcohol consumption as well as the negative health effects caused by excessive alcohol consumption.

Explanation:

The government regulates alcohol by imposing taxes on it. According to researchers, this taxation causes the price of alcohol to increase and when the price increases, consumption levels drop. In turn, diseases such as Cirrhosis of the liver which is caused by excessive alcohol consumption reduces.

An example of a country where an increase in the tax of a particular alcoholic beverage (aquavit), led to a reduction in consumption of this particular alcohol was in Denmark in the course of the first world war. This regulatory action saw the consumption of this particular drink, drop significantly, and consumers had to source for other alcoholic beverages.

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