The Economics of SmokingWhile the tobacco industry is among the most substantial and successful economic enterprises, tobacco consumption kills more people than any other product. Economic analysis of tobacco product markets, particularly for cigarettes, has contributed considerable insight to debates about the industry's importance and appropriate public policy roles in grappling with health consequences of tobacco. The most significant example is the rapidly expanding and increasingly sophisticated body of research on the effects of price increases on cigarette consumption. Because excise tax is a component of price, the resultant literature has been prominent in legislative debates about taxation as a tool to discourage smoking, and has contributed theory and empirical evidence to the growing interest in modeling demand for addictive products. This chapter examines the research and several equity and efficiency concerns accompanying cigarette taxation debates. It includes economic analysis of other tobacco control policies, such as advertising restrictions, prominent in tobacco control debates. Research addressing the validity of tobacco-industry arguments that its contributions to employment, tax revenues, and trade balances are vital to economic health in states and nations is also considered, as it is the industry's principal weapon in the battle against policy measures to reduce tobacco consumption. |
Contents
Introduction and overview | 1 |
Cigarette and other tobacco taxation | 16 |
Advertising promotion and the demand for tobacco products | 29 |
Copyright | |
2 other sections not shown
Common terms and phrases
adults advertising and promotion advertising ban advertising expenditures advertising restrictions aggregate American Medical Association behavioral economics Bickel Chaloupka FJ cigarette advertising cigarette consumption cigarette demand cigarette excise tax cigarette prices cigarette smoking cigarette taxes concluded consequences of smoking consumers costs of smoking countries demand for cigarettes Department of Health disease domestic tobacco econometric economic analysis Economic Research economists effects of price elasticity of demand empirical estimates evidence external costs Health and Human health consequences Health Economics Human Services impact of cigarette impact of price income Keeler Laugesen and Meads Lewit lung cancer myopic nicotine nonsmokers Ohsfeldt price elasticity Public Health rational addiction model recent relatively smokeless tobacco smoking and health smoking cessation smoking initiation smoking participation smoking prevalence smoking-related social costs tax increase taxation Tobacco Advertising tobacco consumption tobacco control policies tobacco farm tobacco industry tobacco price tobacco products U.S. Department Warner youth access youth smoking