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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 13:06

18% of alcohol consumed in South Estonia comes from Latvia

BC, Tallinn, 20.10.2016.Print version
Alcohol bought in Latvia makes up roughly 6 % of the total amount of booze bought by Estonians, whereas in South Estonia the ratio is as high as 18 %, a survey taken by Emor in mid-August indicates informs LETA.

It appears from the survey that Estonians would no longer head to Latvia to buy alcohol if the difference in prices was smaller by 10 percentage points (ppt) than it is now.


"On the basis of data garnered in surveys mathematical models can be set out that help to assess how different factors will influence the behavior of people – we applied a model like this also in this survey on cross-border alcohol purchases to identify a link between price differences and buying alcohol in Latvia," Emor expert Aivar Voog said.


In order for the share of Latvia to become marginal and amount to 1% in all of Estonia and to less than 10% in South Estonia, the price difference between Estonia and Latvia should narrow by 10 ppt.


"This would be possible if the alcohol price level rose significantly in Latvia as a result of higher excise duties. At present the price difference between Estonia and Latvia is more than 20%," Emor expert Julia Aru said.


According to Emor, the 15% rise in the alcohol excise duty in Estonia next year may increase the price difference with Latvia by a further 5 ppt or so. As a result, the amounts bought in Latvia will grow by 1.5 ppt  across Estonia, including by just 1 ppt in Tallinn, northern and western Estonia and Viru county. In the Tartu region the share of booze bought in Latvia would grow from 7.5% to 11% and in South Estonia from 18% to 26%.


Emor interviewed 1,577 Estonian residents of ages 15-74 year for the survey.






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