Alcoholic beverage consumption in China: a censored demand system approach

Abstract

China's admission in the WTO and commitment to cut tariffs on alcohol related goods provide a considerable opportunity for the USA, Europe and other countries. The present study examines Chinese consumer behaviour with regard to alcoholic beverages (wine, wine cooler and beer) using a Chinese household survey data. The results show that beer and wine cooler are normal goods while wine is still a luxury good in China. The price elasticities of wine and wine cooler are larger than that of beer.

Acknowledgements

The views expressed in this publication are those of the authors and do not necessarily reflect the views of Texas Tech University and the Food and Agriculture Organization of the United Nations.