First published: March 12, 2010
Source: Voxeu.org
Deliana Kostova Hana Ross Evan Blecher Sara Markowitz
Do higher cigarette prices deter smoking? This column finds that policymakers in developing countries could reduce cigarette consumption by youths by raising taxes. A 10% increase in the price will reduce youth cigarette demand by 18.3%.
Reducing tobacco use has been an important issue for policymakers ever since the US Surgeon General’s 1964 report on the adverse health effects of tobacco. Tobacco is now established as a leading cause of preventable death worldwide and is expected to claim nearly a billion lives in the 21st century (WHO 2008).
Youth smoking in developing nations
The majority of the tobacco public health burden will be carried by developing countries, due to the unfortunate combination of increasing consumption and health system inadequacy. Of particular concern in developing countries is youth smoking, which can start at very young age and is the primary way of establishing adult smoking habits.
Although tobacco use is a major public health problem in lower-income countries, most of the evidence on what determines smoking comes from a few industrialised countries, primarily the US. There is a wealth of research on the impact of US cigarette prices or taxes, most of which agrees that taxes/prices can be used effectively to influence smoking decisions.
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