# data[].attributes.body
Overall, the disadvantages of an unequal burden on different households and ineffecient allocation of resources. increased gov tax rev will outweigh the increased gov tax rev.The concept of gov intervention is not effective because the tax revenue gained will not justify the harm to low income households and may long term impact the wine production (overproduction). Different drinks have different alcohol contents and so their impacts would be different. Depends on consumers dependency on alcohol and how much a tax would impact their consumption. The effect on different countries are different - 20% on germany where its popular.

- use quotas, negative advertising instead

# data[].attributes.body
Govt: Govt Int --> Massive tax revenue to be redistributed. (alcohol is addictive hence inelastic demand, tax will have a proportionally smaller affect on quantity demanded).

Society: Intention --> Reduce the negative externality, better for soc because more effient towards AE. Reduction in wlf.
Article --> Might not work

Consumers --> Increase in price --> rational will dislike

Producers --> Reduction in price to popt and quantity to qopt, reduction in revenue.

# data[].attributes.body
-Gov. intervention
-Equity
-Economic well being

# data[].attributes.body
- tax varies between countries, beverages -- uneven imapcts on different households
- import tariffs encourage excessive domestic production, which is inefficient and wasteful
- too many taxes colliding, so the combined tax is now 60%
- the value of wine is different in different countries, so not fair

# data[].attributes.body
The increase in tariffs will increase the cost of production to alcohol firms and lower their profit potential. This will lead to a decrease supply, shifting the S=MPC=MSC curve upward to MPC+tax. The quantity decreases from Qm to Qopt while the price will increase from Pm to Popt. An increase in price will discourage the consumers to buy alcohol as the purchasing power decreases.

# data[].attributes.headline
1. (KAI) How does this reduce negative externalities?

# data[].attributes.subject
1. (KAI) How does this reduce negative externalities?

# data[].attributes.body
Introducing a Pigouvian tax on the consumption of alcohol reduces negative externalities by increasing the MPC to be as close to the MSC as possible, through a tax amount based on the external costs to society. This reduces the over-consumption of the product and intern reducing the welfare loss.
In regards to human behavior, those who are not addicted to alcohol will likely buy it less as the price is higher after the tax, as well as this producers may be incentivized to produce it less, driving down both consumption and production.