Efficacy of the tobacco tax policy in the presence of product heterogeneity: A pseudo-panel approach applied to Spain

Burguillo, Mercedes; Romero-Jordán, Desiderio; Sanz-Sanz, José Felix

doi:10.1016/j.healthpol.2019.06.011

Cited by 5 publications

(5 citation statements)

References 41 publications

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“…This finding also is in agreement with estimated elasticities for Lebanon (-1.54) (16). Many studies on cigarette elasticity using the AIDS model found that elasticity ranges from -0.33 (in Spain) (17) to -1.188 (in the U.S.) (18). A range of evidence-based policy and program interventions to design requires identifying those who have been most harmed and the quantity of that harm.…”

Section: Discussionsupporting

confidence: 82%

“…is the share of a commodity in a household budget, p i represents the price, q i is the quantity of a demanded product, ε d is own-price elasticity, and x 0 is the original income. Assuming that elasticities are equal to zero, the short-run effect of a change in price on household welfare could be approximated as follow: (17) ∆w 1 x0…”

Section: Welfare Analysismentioning

confidence: 99%

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Using Compensating Variation to Measure the Costs of Taxing Cigarette in Iran

et al. 2020

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Background: The impact of pricing strategies on different socioeconomic groups is not uniform. There is urgency in addressing of characteristics of household demand to make a policy choice in line with development goals. Objectives: This study was done to assess the effect of welfare loss from counterfactual tax-induced cigarette price increases on representative smokers by different expenditure quintiles in Iran. Methods: This analytical study was conducted using pooling cross-sections and compensating variation (CV) to evaluate the costs of taxing cigarettes. The data source used in our study was the Household Income and Expenditure survey (HIES) from 2001 - 2017. We did an almost ideal demand system (AIDS) analysis to estimate elasticities for cigarette demand and compute welfare losses from simulated cigarette price increases by socioeconomic groups. We used STATA version 15.1 (StataCorp, College Station, TX, USA), and Microsoft Excel 2016 to undertake the relevant analyses and estimates. Results: The highest loss was suffered by households of the poorest quintile, who should afford 1.41%, 2.47 %, and 3.20% more budget in the long-run, respectively, as the result of three simulated price increases to stay at the same well-being as before. Conclusions: Concerning direct welfare loss from the cigarette taxation reform in Iran, and focusing on low-income groups, such a policy can be considered as regressive. However, this regressivity can be reduced by informing strategies to redirect sin tax revenues that benefit the poor.

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Section: Discussionsupporting

confidence: 82%

Section: Welfare Analysismentioning

confidence: 99%

Using Compensating Variation to Measure the Costs of Taxing Cigarette in Iran

et al. 2020

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“…Further, product-substitution involving switching to cheaper alternatives, and heterogeneity among the tobacco prices along with their complex taxation tiers are also potential reasons for no or positive association between tobacco product prices and consumption 12 . The heterogeneity in prices of tobacco products may incentivize tobacco users to migrate to cheaper alternatives, thereby diluting the impact of an increase in tobacco prices on consumption 60 , 61 .…”

Section: Discussionmentioning

confidence: 99%

Impact of tobacco price and taxation on affordability and consumption of tobacco products in the South-East Asia Region: A systematic review

Nazar¹,

Sharma²,

Chugh³

et al. 2021

Tob. Induc. Dis.

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INTRODUCTION The objective of the review was to study the impact of tobacco taxes or prices on affordability and/or consumption of tobacco products in WHO South-East Asia Region (SEAR) countries, overall and by socioeconomic status; and change in consumption of one tobacco product for a given change in price/tax on another tobacco product. METHODS The searches were made in five databases (Medline, Embase, Cinahl, EconLit, Tobacconomics) using keywords such as 'tobacco', 'tax', 'price', 'impact' with their synonyms. Additionally, the first 100 articles through google search and e-reports from targeted sources were also reviewed. Studies illustrating the impact of prices/taxes on consumption/affordability of tobacco products in SEAR, in English and with no limitation on year, were included in the review. After two steps of screening, data from 28 studies were extracted using a structured and pre-tested data extraction form. RESULTS Of the 28 studies, 12 studies reported an inverse association between price and consumption/affordability, while 11 studies reported no or positive association between price and consumption/affordability of tobacco products. Five studies had unclear interpretations. The majority of studies estimated that the less affluent group were more price responsive compared to the more affluent group. Some studies indicated increased consumption of one product in response to price rise of another product, although, the findings were inconsistent. CONCLUSIONS The findings of our review support the use of tobacco tax and price measures as effective tools to address the tobacco epidemic. Our findings, however, also emphasize the importance of increasing tobacco product taxes and prices sufficiently to outweigh the effects of income growth, in order for the measures to be effective in reducing the affordability and consumption of tobacco products.

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“…Niestety, wnioski z tego badania s podobne jak w wy ej przytoczonymwzrost ceny papierosów zwi zany ze wzrostem stawki podatkowej na wyroby tytoniowe nie ma znacz cego wp ywu na redukcj liczby osób pal cych. Wykazano równie , e wraz ze spadkiem konsumpcji papierosów wzrasta konsumpcja ich ta szych zamienników, w tym przypadku ci tego tytoniu papierosowego (Burgillo i in., 2019).…”

Section: Podstawowe Instrumenty Regulacyjnej Polityki Publicznejunclassified

Tytoń i nowatorskie wyroby tytoniowe – konsekwencje zdrowotne i aspekty ekonomiczne

Suchecki¹,

Haczyński²

2022

Ochrona Zdrowia I Gospodarka. Przegląd Współczesnych Problemów Systemu Opieki Zdrowotnej

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Smoking and the use of nicotine products both in Poland and in the world remain at a high level. Current research shows the emergence of new smoking trends and the emergence of innovative tobacco and nicotine products that appear to be safe and harmless. However, scientists point out that the nicotine contained in them can lead to severe addiction, and the harmful chemicals they include lead to negative health effects for their consumers in the long run. This study presents the properties of traditional and innovative tobacco products, the health consequences of smoking, and selected economic aspects related to both the functioning of the tobacco industry, revenues to the state budget due to excise duty on tobacco products, and the health effects of smoking in the context of public health. Both the European Union and its member states (including Poland) take legislative measures to reduce the health and social risk posed by tobacco products and minimize the harm caused by their use. A significant problem is a lack or low degree of regulation of the circulation and use of new types of tobacco and nicotine products, which, according to the latest research, are also harmful, especially for young people who have easy access to them.

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Efficacy of the tobacco tax policy in the presence of product heterogeneity: A pseudo-panel approach applied to Spain

Cited by 5 publications

References 41 publications

Using Compensating Variation to Measure the Costs of Taxing Cigarette in Iran

Using Compensating Variation to Measure the Costs of Taxing Cigarette in Iran

Impact of tobacco price and taxation on affordability and consumption of tobacco products in the South-East Asia Region: A systematic review

Tytoń i nowatorskie wyroby tytoniowe – konsekwencje zdrowotne i aspekty ekonomiczne

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