Home > Harmful use of alcohol can result in substantial economic costs.

Mongan, Deirdre (2011) Harmful use of alcohol can result in substantial economic costs. Drugnet Ireland, Issue 39, Autumn 2011, pp. 5-6.

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A report by Byrne1 aimed to calculate the quantifiable costs imposed on Irish society in 2007 by harmful use of alcohol. These cost estimates can assist policy makers in justifying and evaluating policies, such as taxation measures, that are aimed at reducing alcohol-related harm, and can help to identify research needs and gaps in national statistical reporting systems. Cross-national comparisons of cost estimates are useful in assessing the negative consequences of alcohol use in different countries and the different policy approaches to dealing with these consequences.  

The costs associated with harmful use of alcohol include both the private cost incurred by the drinker, such as medical expenses, and external costs which are borne by third parties. The taxpayer bears significant external costs in the form of increased healthcare costs and the cost to the justice system of dealing with alcohol-related crime. The methodology used by the author of this study to estimate the cost of harmful use of alcohol was based on the methods used in similar reports from other developed countries, including the UK, and used data from surveys and surveillance systems.
 
In 2007 the overall cost of harmful use of alcohol in Ireland was estimated to be €3.7 billion, representing 1.9% of GNP that year. The overall economic cost as a percentage of GNP was broadly in line with estimates calculated for other EU countries. A breakdown of these costs is presented in Table 1. Health system costs accounted for 32% of the overall cost, and included the costs of general practitioner and community care (€574 million), hospital inpatient care (€500 million), and mental health services (€104 million). Alcohol-related crime also accounted for 32% of the overall cost, and included the costs of property, health and victim services (€435 million), the criminal justice system (€319 million), security systems (€264 million) and loss of productive output (€171 million).

 

These estimates include only the tangible costs of harmful use of alcohol and are an underestimate of the total costs insofar as sufficient data are not available in Ireland to calculate some of the intangible costs included in estimates from other countries. Intangible costs include the pain and suffering caused to both the drinker and those affected by his/her behaviour. No attempt is made in this report to calculate these human or emotional costs. When the unquantified human costs are considered, estimates of the tangible costs greatly understate the true cost to society of harmful use of alcohol.  

1.         Byrne S (2011) Costs to society of problem alcohol use in Ireland. Dublin: Health Service Executive. www.drugsandalcohol.ie/15781

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