Re‐exploring the early relationship between teenage cigarette and e‐cigarette use using price and tax changes

Abstract

Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

Meta-Analysis of E-Cigarette Price Elasticity

“…In as-yet unpublished work, Mathios 45 reports that when faced with increased ENDS price, users immediately choose cigarettes rather than quitting ENDS. Among adolescents, Pesko and Warman 19 report a significant positive association between ENDS cartridge price and number of cigarettes smoked, while other outcomes in this study and in Cantrell et al 46 did not reach statistical significance. Findings in this narrative summary are directionally consistent with Cotti et al 22 and Stein et al 47 in the meta-analysis in Figure 3, but not with the other studies in the meta-analysis, some of which were published earlier in 2016 and 2017.…”

“…These were excluded from the meta-analysis model because they used different outcome measures (e.g., prevalence), non-comparable populations (e.g., adolescents or adult subpopulations), or because exact elasticities were not reported. Consistent with the metaanalysis in Figure 2, Snider et al 37 , Pesko et al 38 , Pesko and Warman 19 , and Friedman and Pesko 39 suggest that higher cigarette price is associated with significantly increased number of ENDS purchased and increased ENDS use prevalence. Cotti et al 40 and Pesko et al 41 find negative cross-price elasticity of ENDS with respect to cigarettes, however these results did not reach statistical significance.…”

“…Quasi-experimental economic studies also show an inverse relationship between cigarette smoking and ENDS use. 18,19 Together, these studies suggest that ENDS are offsetting or replacing cigarettes, rather than augmenting total nicotine consumption.…”

The effects of e-cigarette taxes on e-cigarette prices and tobacco product sales: Evidence from retail panel data

“…36 Please see Section 2 for a review. Of 13 studies in total assessing the relationship between e-cigarettes and cigarettes, we document 10 studies finding they are substitutes (Pesko, Courtemanche, and Maclean 2020, Friedman and Pesko 2022, Saffer et al 2020, Pesko and Warman 2022, Friedman 2015, Pesko Hughes, and Faisal 2016, Dave Feng, and Pesko 2019, Pesko and Currie 2019, and Tuchman 2019, one study finding they are largely unrelated goods (though some evidence of substitution is present) (Allcott and Rafkin 2021), and two studies finding they are complements Adams 2017 andTefft 2018).…”

Impact of vaping introduction on cigarette smoking in six jurisdictions with varied regulatory approaches to vaping: an interrupted time series analysis

“…Numerous studies have found or supported the view that among youths and young adults, vaping acts as a substitute for cigarette smoking. 5–8 However, the degree of substitution also depends on government regulations on vaping such as whether nicotine is permitted in vaping devices, maximum permissible nicotine content, minimum age for purchase and tax on e-cigarettes, as well as the regulatory and taxation environment for cigarettes. To date, to the best of our knowledge, no studies have examined the impact of vaping introduction on cigarette smoking across settings with varied regulatory approaches to vaping.…”