scholarly journals Do Regulations on Smoking Limit Cigarette Demand? An Empirical Evidence from Pakistan

2020 ◽  
Vol 4 (4) ◽  
pp. 161-186
Author(s):  
Assad Ullah Khan ◽  
Anwar Shah
Keyword(s):  
Cigarette Smoking ◽  
Price Elasticity ◽  
Cigarette Consumption ◽  
University Education ◽  
Cigarette Price ◽  
Demand Model ◽  
Tobacco Policies ◽  
Cigarette Demand ◽  
Long Run ◽  
Cigarette Taxation

Enacting Ordinance No LXXIV 2002, Pakistan has developed crucial anti-tobacco policies in the last two decades. We, therefore, examine in this paper effects of both price (cigarette taxation) and non-price (public regulations on cigarette smoking) anti-tobacco policies on cigarette demand. To accomplish this objective, we examine the short and long run dynamics of cigarette demand in Pakistan using auto-regressive distributed lag (ARDL) estimator covering the period 1981-2018 (annual observations). The study compares price elasticity estimated with and without regulations on cigarette smoking. The result obtained shows that when price increases by 10%, cigarette consumption decreases by 5% in the short run while it decreases by 6.9% in the long run. This finding confirms that cigarette demand model, in Pakistan, is in-elastic. More interestingly, the study finds that non-price regulations on smoking and cigarette demand have negative and statistically significant association. This finding confirms that non-price regulations influences the long-term dynamics of cigarette smoking in Pakistan. Furthermore, we obtain low price elasticity with non-price regulations and high price elasticity without non-price regulations while estimating cigarette demand equation. This empirical result is an evident of the fact that estimated cigarette price elasticity without incorporating non-price regulations into the demand model, are upward biased. The study therefore, concludes that smoking regulation policy based on overstated cigarette price elasticity would produce ambiguous outcomes. Hence, relying only on cigarette taxation (price policy) to regulate cigarette smoking would not produce desirable outcome. In addition, university education is positively and significantly associated with cigarette consumption. This finding show that our university education do not properly convey anti-smoking message to students. To reduce cigarette smoking, Pakistan will have to implement stronger, more comprehensive and better enforced non-price regulations along with taxes on cigarettes.

scholarly journals The Experimental Tobacco Marketplace: Demand and Substitutability as a Function of Cigarette Taxes and e-Liquid Subsidies

2019 ◽  
Vol 22 (5) ◽  
pp. 782-790
Author(s):  
Derek A Pope ◽  
Lindsey Poe ◽  
Jeffrey S Stein ◽  
Brent A Kaplan ◽  
William B DeHart ◽  
...  
Keyword(s):  
Behavioral Economics ◽  
Real World ◽  
The Other ◽  
Cigarette Price ◽  
Cigarette Taxes ◽  
On Demand ◽  
Pricing Policies ◽  
Cigarette Demand ◽  
Cigarette Taxation ◽  
Initial Intensity

Abstract Introduction The experimental tobacco marketplace (ETM) approximates real-world situations by estimating the effects of several, concurrently available products and policies on budgeted purchasing. Although the effects of increasing cigarette price on potentially less harmful substitutability are well documented, the effects of other, nuanced pricing policies remain speculative. This study used the ETM as a tool to assess the effects of two pricing policies, conventional cigarette taxation and e-liquid subsidization, on demand and substitutability. Methods During sampling periods, participants were provided 2-day samples of 24 mg/mL e-liquid, after which ETM purchase sessions occurred. Across two ETM sessions, conventional cigarettes were taxed or e-liquid was subsidized in combination with increasing cigarette price. The other four available products were always price constant and not taxed or subsidized. Results E-liquid functioned as a substitute for conventional cigarettes across all conditions. Increasing cigarette taxation and e-liquid subsidization increased the number of participants for which e-liquid functioned as a substitute. Cigarette taxation decreased cigarette demand, by decreasing demand intensity, and marginally increased the initial intensity of e-liquid substitution, but did not affect the functions’ slopes (substitutability). E-liquid subsidization resulted in large increases in the initial intensity of e-liquid substitution, but did not affect e-liquid substitutability nor cigarette demand. Implications 24 mg/mL e-cigarette e-liquid was the only product to significantly substitute for cigarettes in at least one condition throughout the experiment; it functioned as a significant substitute throughout all four tax and all four subsidy conditions. Increasing cigarette taxes decreased cigarette demand through decreases in demand intensity but did not affect e-cigarette substitution. Increasing e-liquid subsidies increased e-liquid initial intensity of substitution but did not affect cigarette demand. Conclusions This study extended research on the behavioral economics of conventional cigarette demand and e-liquid substitutability in a complex marketplace. The results suggest that the most efficacious method to decrease conventional cigarette purchasing and increase e-liquid purchasing may involve greatly increasing cigarette taxes while also increasing the value of e-liquid through potentially less harmful product subsidization or differential taxation.

scholarly journals Does cigarette demand respond to price increases in Uganda? Price elasticity estimates using the Uganda National Panel Survey and Deaton’s method

BMJ Open ◽  
2019 ◽  
Vol 9 (3) ◽  
pp. e026150 ◽  
Author(s):  
Grieve Chelwa ◽  
Corne van Walbeek
Keyword(s):  
Price Elasticity ◽  
Evidence Base ◽  
Cigarette Consumption ◽  
Sub Saharan Africa ◽  
Panel Survey ◽  
Elasticity Of Demand ◽  
Excise Taxes ◽  
Price Elasticity Of Demand ◽  
Tax Revenues ◽  
Cigarette Demand

ObjectiveTo provide the first published estimates of the price elasticity of demand for cigarettes in Uganda and thereby contribute to growing the evidence base of the likely impact of excise taxes on cigarette consumption and tax revenues in Sub-Saharan Africa.MethodWe use a linear approximation of the Almost Ideal Demand System along with expenditure data from the Uganda National Panel Survey and exploit the fact that prices of cigarettes vary across geographical space in Uganda.ResultsWe find that cigarettes are price inelastic in Uganda with elasticity estimates ranging between −0.26 and −0.33. That is, we expect that cigarette demand will decline by between 2.6% and 3.3% every time cigarette prices rise by 10%. These elasticity estimates are in line with international evidence and are robust to outliers in the data.ConclusionOur estimates of the price elasticity of demand for cigarettes suggest that the authorities in Uganda can reduce cigarette consumption and simultaneously increase tax revenues by increasing the excise taxes on cigarettes.

scholarly journals IMPACT OF GOVERNMENT POLICY AND RATIONALITY OF THE SMOKER TO THE CIGARETTE CONSUMPTION IN INDONESIA

2018 ◽  
Vol 1 (3) ◽  
pp. 167
Author(s):  
Noor Syaifuddin
Keyword(s):  
Government Policy ◽  
Government Intervention ◽  
Cigarette Consumption ◽  
Poor People ◽  
Cigarette Price ◽  
The People ◽  
Long Run ◽  
Cigarette Advertising ◽  
The Government ◽  
The Impact

Even though there is high need of the excise revenue from a cigarette, but the government of Indonesia needs to take into account the long run effect of cigarette to the people. There are poverty, health and education issues relating to the cigarette consumption. Therefore, the government intervention can help people to curb the cigarette consumption. This study attempts to find the impact of the government policy through the excise tariff policy, and the rationality of the smoker to the cigarette consumption in Indonesia. This study recommends the government intervention in order to control the cigarette consumptions in Indonesia by pushing the cigarette price and making cigarette less affordable for less rationale smoker (the young and poor people). Secondly, the government can take an action in delimiting the access of cigarette advertising and educate people about the danger of cigarette to the people.

scholarly journals Subtle right ventricular dysfunction in asymptomatic chronic heavy cigarette smokers: a speckle tracking case-control study

2021 ◽  
Vol 73 (1) ◽  
Author(s):  
Mohammad Iqbal Janhangeer ◽  
Ghada Youssef ◽  
Weal El Naggar ◽  
Dalia El Remisy
Keyword(s):  
Cigarette Smoking ◽  
Right Ventricular ◽  
Ventricular Function ◽  
Right Ventricular Function ◽  
Speckle Tracking ◽  
Longitudinal Strain ◽  
Global Longitudinal Strain ◽  
Cigarette Consumption ◽  
Cigarette Smokers ◽  
The Right

Abstract Background Chronic heavy cigarette smoking can affect the right ventriclular function. The standard echocardiography may not show early right ventricular functional changes, and a more sensitive measure is needed. The aim of this work was to evaluate the subtle subclinical effects of chronic heavy cigarette smoking on the right ventricular function. The study included 55 healthy asymptomatic chronic heavy cigarette smokers (smoking history of at least 5 pack-years and a daily cigarette consumption of at least 1 pack) and 35 healthy non-smoking control subjects. Patients underwent a full clinical assessment and a conventional as well as a 2D-speckle tracking transthoracic echocardiography of the right ventricle and data was compared between the 2 groups. Results The mean age was 32.9 ± 7.2 years in smokers and 30.9 ± 7.9 years in non-smokers (p = 0.227). The 2 groups showed comparable conventional right ventricular systolic and diastolic functions. Smokers showed a significantly lower (less negative) right ventricular global longitudinal strain (− 19.0 ± 3.2% vs. − 24.5 ± 3.5%, p < 0.001). Patients with a higher daily cigarette consumption showed a poorer right ventricular global longitudinal strain (p = 0.014). Conclusion Chronic heavy cigarette smoking can adversely affect the right ventricular function, a finding that can be easily missed by conventional echocardiography and can be better detected by the right ventricular speckle tracking.

scholarly journals Testing for Changes in the Price Elasticity of Residential Electricity Demand

1986 ◽  
Vol 15 (2) ◽  
pp. 123-129 ◽  
Author(s):  
Thomas H. Stevens ◽  
Gail Adams
Keyword(s):  
Public Policy ◽  
Price Elasticity ◽  
Forecast Accuracy ◽  
Electricity Demand ◽  
Recent Period ◽  
Residential Sector ◽  
Real Price ◽  
Long Run ◽  
Residential Electricity

The demand for electricity in the residential sector is estimated to have become less elastic for the recent period of rising real prices as compared to earlier periods of stable or falling real price. Several possible reasons for this are investigated and we conclude that demand appears to be asymmetric with respect to price in both the short and long run. We then examine whether or not this is an important factor for forecast accuracy and public policy.

scholarly journals Price elasticity of demand for cigarettes in Bosnia and Herzegovina: microdata analysis

2020 ◽  
Vol 29 (Suppl 5) ◽  
pp. s304-s309
Author(s):  
Dragan Gligorić ◽  
Anđela Pepić ◽  
Saša Petković ◽  
Jovo Ateljević ◽  
Borislav Vukojević
Keyword(s):  
Bosnia And Herzegovina ◽  
Price Elasticity ◽  
Demand Model ◽  
Middle Income ◽  
Excise Tax ◽  
Middle Income Countries ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand ◽  
Main Driver ◽  
Cigarette Prices

BackgroundBosnia and Herzegovina (B&H) is among the top 10 countries in the world in terms of number of smokers. The cigarette prices in B&H are under a direct impact of state excise tax policy. The specific excise on cigarettes was introduced in B&H in 2009. Since then it has been increasing every year thus being the main driver of cigarette prices growth.MethodsIn this paper we estimate price elasticity of demand for cigarettes following Deaton demand model and apply it on microdata obtained from the Household Budget Surveys in B&H conducted in 2011 and 2015. Deaton model uses within-cluster information to estimate total expenditure elasticities and then uses between-cluster information to estimate price elasticities. For B&H, the cluster is defined as a municipality × in the year t. Our sample contains 14 252 households, divided into 267 clusters.ResultsOur results show that the price elasticity is statistically significant and amounts to −1.366. This means that if cigarette prices in B&H are increased by 10%, the demand for cigarettes would decrease by 13.66%.ConclusionsWe found a negative price elasticity of demand for cigarettes of −1.366. These results of the econometric estimate of elasticity of demand are more elastic compared with the results of similar surveys carried out on the sample of low and middle-income countries. It demonstrates that the demand for cigarettes responds strongly to the price increase.

scholarly journals Cigarette Affordability and Cigarette Consumption among Adult and Elderly Chinese Smokers: Evidence from A Longitudinal Study

2019 ◽  
Vol 16 (23) ◽  
pp. 4832 ◽  
Author(s):  
Xiao Hu ◽  
Yang Wang ◽  
Jidong Huang ◽  
Rong Zheng
Keyword(s):  
Socioeconomic Status ◽  
Longitudinal Study ◽  
Fixed Effects ◽  
Smoking Behavior ◽  
Cigarette Consumption ◽  
Cigarette Price ◽  
Middle Aged ◽  
Elderly Age ◽  
Price Tiers ◽  
The Impact

China is in the midst of an epidemic of non-communicable diseases (NCDs), which has increasingly accounted for a growing share of disease burden, due in part to China’s ongoing rapid socioeconomic changes and population aging. Smoking, the second leading health risk factors associated with NCDs in China, disproportionately affects the old population more than their younger counterparts. Using survey data from the China Health and Retirement Longitudinal Study (CHARLS), this study evaluated the impact of changes in cigarette affordability on smoking behavior among middle-aged and elderly (age 45 and older) smokers. Self-reported cigarette price and disposable income were used to calculate cigarette affordability. Cigarette consumption was measured using the number of cigarettes smoked per day reported by the survey respondents. The correlation between cigarette affordability and cigarette consumption was estimated using generalized estimating equations adjusting for demographics, socioeconomic status, geolocations, and cigarette price tiers, as well as year fixed effects. The estimated overall conditional cigarette affordability elasticity of demand was –0.165, implying a 10% decrease in cigarette affordability would result in a reduction in cigarette consumption by 1.65%. The cigarette affordability responsiveness differs by demographics, socioeconomic status, geolocations, and cigarette price tiers. This study provides evidence that tax/price policies that reduce cigarette affordability could lead to a decrease in cigarette consumption among middle-aged and elderly smokers in China. Smoke-free laws, as well as minimum price regulations, may be needed to compliment excise tax policy to target specific smoking subgroups whose cigarette consumption is less sensitive to changes in cigarette affordability.

scholarly journals Price, Income, and Affordability as the Determinants of Tobacco Consumption: A Practitioner’s Guide to Tobacco Taxation

2020 ◽  
Author(s):  
Nigar Nargis ◽  
Michal Stoklosa ◽  
Ce Shang ◽  
Jeffrey Drope
Keyword(s):  
Price Elasticity ◽  
Tobacco Consumption ◽  
High Income ◽  
Cigarette Consumption ◽  
Tobacco Products ◽  
Middle Income ◽  
Middle Income Countries ◽  
Price Increases ◽  
Tobacco Tax ◽  
Tobacco Taxation

Abstract Introduction Tobacco product prices and consumers’ income are the two major economic determinants of tobacco demand. The affordability of tobacco products is dependent on the price of tobacco products relative to consumer income. Increase in tobacco tax is expected to lead to higher price, lower affordability, and reduced consumption. Price elasticity and affordability elasticity are used in analyzing the effect of tobacco tax increases on tobacco consumption and public health. The availability of both parameters raises the question of which one to apply in policy discussions. Aims and Methods Using global data on cigarette consumption, price, income, and tobacco control measures for 169 countries over 2007–2016, this study estimated the price elasticity and affordability elasticity of cigarette consumption by country income classification using country-specific fixed effects model for panel data. Results The estimates show that the restriction of equal strength of the effects of price and income changes on tobacco consumption maintained in affordability elasticity estimation is valid for low- and middle-income countries, while it is rejected for high-income countries. Conclusions Affordability elasticity may prove to be a useful parameter to explain and predict the sensitivity of consumers to tobacco tax and price policy changes under conditions of robust economic growth, which are more likely to be observed in countries with initial low- or middle-income setting. It can provide a reasonable benchmark for tobacco tax and price increase necessary to effectively reduce affordability and consumption of tobacco, which can form a basis for building systematic tax and price increases into the tobacco tax policy mechanism. Implications Price elasticity measures the sensitivity of consumers to changes in real prices, holding real income constant. Affordability elasticity measures the sensitivity of consumers to price changes adjusted for inflation and income changes. Existing scientific literature on tobacco demand abounds in both price and affordability elasticity estimates, without providing a clear explanation of the theoretical and policy implications of using one parameter over the other. By estimating and comparing price and affordability elasticities for high-income and low-and-middle-income countries separately, this article offers a guide to the practitioners in tobacco taxation for evaluating the effectiveness of tax-induced price increases on tobacco consumption.

Tobacco price increases in Korea and their impact on socioeconomic inequalities in smoking and subsequent socioeconomic inequalities in mortality: a modelling study

2020 ◽  
pp. tobaccocontrol-2019-055348
Author(s):  
Hwa-Kyung Lim ◽  
Young-Ho Khang
Keyword(s):  
Price Elasticity ◽  
National Health ◽  
Smoking Prevalence ◽  
Cigarette Consumption ◽  
Current Smoking ◽  
Price Increases ◽  
Index Of Inequality ◽  
Per Capita ◽  
Inequalities In Mortality ◽  
Modelling Study

ObjectiveThrough a modelling study, we assessed the impact of tobacco price increases on smoking and smoking inequalities by income, and then quantified the subsequent effects on mortality and inequalities in mortality in Korea.MethodsEleven-year pooled data from the Korea National Health and Nutrition Examination Survey (KNHANES) (n=65 197) were used to estimate the income group-specific price elasticity. The price elasticity was then used to calculate changes in current smoking prevalence and per capita cigarette consumption resulting from a spectrum of hypothetical tobacco price increases. The mortality risk function from the 10-year mortality follow-up data of the National Health Insurance Service-National Sample Cohort (n=293 858, numbers of deaths=14 953) and the current distributions of smoking-related variables from the KNHANES 2015–2017 were employed to estimate the effect of tobacco price increases on inequality in mortality.ResultsLow-income Korean smokers were more responsive to changes in tobacco price. Increasing the tobacco price by 100% would achieve the overall reduction of 2.0% for 10-year mortality. For mortality inequalities by income, the relative index of inequality (slope index of inequality) would be reduced by 3.8% (4.8%) for 10-year mortality.ConclusionsThis modelling study showed that tobacco price increases in Korea can reduce current smoking prevalence and per capita cigarette consumption in the whole population, and especially among the poor, which in turn would reduce the gap in mortality between income groups.

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