Price Policy and Taxation as Effective Strategies for Tobacco Control

Abstract

ObjectiveOnly 13% of the world's population are living in countries imposing appropriate tobacco tax-rates. This study aims to promote the implementation of price policy measures as a striking tobacco control strategy in Austria and to encourage other countries to further increase their taxes to WHO best-practice levels.MethodThis study used the yearly economic data from Austria from 1997 to 2015. Applying a model for regression analysis, the price elasticity of total tobacco consumption was estimated.ResultsBetween 1997 and 2015 the price elasticity of demand for tobacco products (including cigarettes, cigars, and other tobaccos) was −0.661, however, the result is statistically insignificant. When excluding 2 anomalous years and removing a variable of the regression model the elasticity was −0.691 and statistically significant, indicating that a 1% increase in tobacco prices will result in a 0.691% decrease of tobacco consumption.ConclusionThe responsiveness of Austrian smokers to price changes has increased during the last decades. Because other activities showed no significance in the analysis, this study should encourage countries world-wide to use price policy and taxation more intensively in order to reduce smoking rates effectively.

Patterns and determinants of tobacco purchase behaviors among male cigarette smokers in Vietnam: A latent class analysis

“…The large percentage of smokers who were classified as price-sensitive contributes to the evidence pointing out that a tobacco taxation increase in Vietnam might be effective in decreasing smoking prevalence. Price increases and higher taxation are cost-effective ways to both reduce cigarette consumption among current smokers and discourage smoking initiation among non-smokers [19][20][21] . A previous study confirmed that a 10% increase in cigarette price would decrease consumption by around 1% in Vietnam, reducing the number of male smokers by approximately 270 thousand 22 .…”

Gender differences in lung cancer epidemiology – do Austrian male lung cancer patients still die earlier in life?

“…Particularly, price policy and taxation are effective strategies to reduce tobacco consumption and especially to prevent smoking initiation among adolescents (25,26).…”

“…Thus, from a Public Health perspective, measures should increasingly focus on smoking behaviors of female adolescents and should endeavor to continue the recently observed decline of smoking prevalence among women in Austria. Particularly, price policy and taxation are effective strategies to reduce tobacco consumption and especially to prevent smoking initiation among adolescents ( 25 , 26 ).…”

Moral dilemma in deciding on the amount of excise tax on tobacco products in the Czech Republic

“…Increasing tobacco taxation is an efficient tool for its control. However, only 13 % of the global population lives in countries that impose adequate taxation on tobacco (Felsinger, Groman, 2022). Olesinski, Rozkrut, Toroj (2020) state that the differences between the actual and optimal tax policy in the case of tobacco products were marginal in the Polish market in the period 2014-2018.…”