Public policies, such as alcohol taxation policy, age restriction policy, production and sales regulation policy, advertising restriction, and rehabilitation, significantly impact alcohol consumption-a complex social issue with wide-ranging implications for public health and safety. This study employs system dynamics methodology to explore the intricate relationships among crucial factors, policies, and their effects on behaviors and outcomes resulting from alcohol consumption. The research identifies various influential factors, including socioeconomic conditions, cultural norms, rehabilitation policies, alcohol pricing, healthcare costs, and societal consequences. These elements are integrated into a dynamic model that captures feedback loops and causal links guiding changes in alcohol consumption, accidents, and long-term effects. Through causal loop analysis, diverse policy scenarios are evaluated for their potential impacts, revealing the intricate influences surrounding alcohol use and the multifaceted repercussions of policy interventions. This research offers a comprehensive perspective on public policy’s role in shaping alcohol-related behaviors and outcomes.