Analysis of Tobacco Price Elasticity in Albania Using Household Level Data

Gjika, Aida; Zhllima, Edvin; Rama, Klodjan; Imami, Drini

doi:10.3390/ijerph17020432

Cited by 6 publications

(5 citation statements)

References 35 publications

(55 reference statements)

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“…34 It also corresponds to the existing estimates of price elasticity in SEE countries from country-specific studies based on the microeconometric analysis. 16 35 36 The separate estimates of the price and income effects highlight that the price and income elasticities did not simply add up to affordability elasticity. Therefore, the affordability elasticity should be considered as a single metric, and the price and income elasticities as separate metrics, which is important from a policy-making perspective.…”

Section: Discussionmentioning

confidence: 97%

“…Subsequently, affordability analysis complements studies of the standard demand function where the effects of prices and income on consumption are separately treated. Several studies that rigorously examine price and incomes elasticities in SEE countries (at the country-specific level) have been produced using the traditional demand function approach and large data sets of microdata from Household Budget Surveys (HBSs), with estimated price elasticity varying from −0.57 in Albania 16 to −1.37 in Bosnia and Herzegovina (BiH). 17 The concept of affordability has been incorporated into the most important policy reports covering global tobacco control issues.…”

Section: Introductionmentioning

confidence: 99%

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Affordability of cigarettes in ten Southeastern European countries between 2008 and 2019

et al. 2023

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BackgroundThe empirical evidence shows that tobacco consumption is strongly associated with its affordability. The nominal growth in tobacco prices imposed by taxation should exceed or at least keep pace with nominal income growth, ensuring that tobacco products become less affordable over time. No analysis covering affordability issues in the Southeastern European (SEE) region has been conducted prior to this research.ObjectivesThe study aims to examine trends in cigarette affordability in ten selected SEE countries over the period 2008–2019 and the impact of affordability on the consumption of cigarettes. On the policy side, it aims to support conducting of more effective evidence-based policy of tobacco taxation.MethodsThe relative income price of cigarettes and the tobacco affordability index are used as affordability measures. The panel regression was run to estimate the impact of affordability measures and other covariates on cigarette consumption.ResultsThe affordability of cigarettes in the selected SEE countries has decreased on average but showed different patterns over the observed period. A decline in affordability has been more dynamic in Western Balkan (non-EU members) countries and low-and-middle-income countries within the SEE region. Econometric estimation confirms affordability as the main determinant of tobacco consumption, indicating that a decline in affordability considerably reduces tobacco consumption.ConclusionsDespite the evidence, affordability is still widely ignored by SEE policymakers when designing national tobacco taxation policies. Policymakers should be aware of the risk that future increases in cigarette prices could lag behind real income growth, making tax policy less effective at reducing consumption. Reducing affordability should be the paramount consideration in designing effective tobacco taxation policies.

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Section: Discussionmentioning

confidence: 97%

Section: Introductionmentioning

confidence: 99%

Affordability of cigarettes in ten Southeastern European countries between 2008 and 2019

et al. 2023

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“…Consequently, issues with stress posed by the pandemic can be considered an incentive for smokers to increase smoking levels. On the side of economic well-being, loss of jobs and reduced incomes should work in the opposite direction toward a decline in smoking prevalence since the positive association between smoking and income is well documented in numerous studies on tobacco products' income elasticity (John, 2005;Peng & Ross, 2009;Yürekli et al, 2010;Tarantilis et al, 2013;Zubović et al, 2018;Jovanović et al, 2018, Gjika et al, 2020. However, loss of income and uncertainty about future financial well-being is also a stress booster that can outrun financial incentives to decrease or quit smoking if the population perceives the loss of income as a temporary and short-term outcome of containment measures.…”

Section: Discussionmentioning

confidence: 99%

Intentions to Smoking Cessation in the Time of COVID-19

Zubović,

Zdravković,

Jovanović

2021

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In this study, we examine whether the outbreak of pandemic has given incentive to smoking cessation and which factors are associated with such intentions, emphasizing change of economic conditions and smoking habits in the time of COVID-19. Data were collected through a telephone survey among a representative sample of the Serbian adult population aged less than 65 years (N=1,002) from 11 to 19 May 2020. The current smokers reported whether the COVID-19 pandemic had changed their tobacco products consumption, disposable income and intentions to cease smoking. Among the current smokers, 26.3% reported that the COVID-19 pandemic triggered intentions to cease smoking. On the other hand, 42.4% of smokers reported a decrease in income, while 22.7% of smokers reported increased smoking during the COVID-19 pandemic. Logistic regression reveals that occasional smokers are the most likely to stop smoking (OR 4.17; CI: 2.18 - 7.99), while the majority of other factors (socio-demographic, economic, smoking habits) do not influence the odds of smoking cessation. Lack of association between intentions to cease smoking and pandemic-related worsening of economic well-being might result from low cigarette prices in Serbia. Consequently, higher taxation of tobacco products is recommended to policymakers.

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“…Albania is a Southern European emerging post-communist economy with a population of 2.8 million people. Tobacco use in Albania is especially high among youth and males 34 and this is a major public health and economic concern 35 35 as 15.3% of adolescents (ages 13-15 years old) currently use tobacco. 36 The issue is critical considering the young population of Albania.…”

Section: Cigarette Price and Tobacco Control Policies In Albaniamentioning

confidence: 99%

“…Excise tax increases on cigarettes that lead to price increases are instrumental for reducing tobacco consumption in Albania. 34 There is a significant space to use fiscal policies to help discourage smoking considering that excise taxes in Albania are the lowest compared with all southeastern European countries, and the regional average itself falls well below that of the European Union.…”

Section: Introductionmentioning

confidence: 99%

Impact of cigarette price and tobacco control policies on youth smoking experimentation in Albania

Merkaj,

Zhllima,

Imami

et al. 2024

Tob Control

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BackgroundAlbania has one of the highest smoking prevalences in Europe and it is particularly high among the youth population. There is a dearth of evidence in Albania, most of Eastern Europe and most middle-income countries on the effect of price on smoking experimentation.ObjectiveThe study aimed to assess the effect of price and tobacco control policies on youth smoking experimentation in Albania.MethodsWe used microdata from the Global Youth Tobacco Survey in Albania for 2004, 2009, 2015 and 2020. We constructed a pseudo-longitudinal dataset and estimated a split-population model to assess the hazard of smoking initiation.ResultsPrice is a significant predictor of smoking experimentation among teenagers in Albania for both males and females (p<0.001). Being male increases the odds for smoking experimentation by more than 50% as compared with females (p<0.001), whereas females appear to be more price sensitive. Peer and parent smoking are also important determinants for smoking experimentation. Introducing penalties for smokers and legal entities violating smoke-free policies implemented in 2014 is also associated with a lower hazard of smoking experimentation.ConclusionPrice is a significant predictor of smoking experimentation among teenagers in Albania for both males and females. A combination of increasing taxes and strengthening the rule of law to control tobacco use in public spaces, in addition to public awareness campaigns targeting both youth and smoking parents, could help to significantly reduce the probability of smoking experimentation.

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Analysis of Tobacco Price Elasticity in Albania Using Household Level Data

Cited by 6 publications

References 35 publications

Affordability of cigarettes in ten Southeastern European countries between 2008 and 2019

Affordability of cigarettes in ten Southeastern European countries between 2008 and 2019

Intentions to Smoking Cessation in the Time of COVID-19

Impact of cigarette price and tobacco control policies on youth smoking experimentation in Albania

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