The Impact of Cigarette Excise Tax Increases on Regular Drinking Behavior: Evidence from China

Abstract

(1) Background: Many studies have shown that increasing taxation on cigarettes does play a role in tobacco control, but few studies have focused on whether increasing cigarette excise taxes significantly affects alcohol consumption. In this article, we aim to examine the effects of China’s 2015 increase in the cigarette excise tax on residents’ regular drinking behavior. (2) Methods: Using survey data from China Family Panel Studies (CFPS), we performed a panel logit regression analysis to model the relationship between the cigarette excise tax and regular drinking behavior. The Propensity Score Matching with Difference-in-Differences (PSM-DID) approach was adopted to determine the extent to which the cigarette excise tax affected residents’ drinking behavior. To test whether the cigarette excise tax could change regular drinking behavior by decreasing daily smoking quantity, we used an interaction term model. (3) Results: China’s 2015 increase in the cigarette excise tax had a significant negative effect on the probability of regular alcohol consumption among smokers, and the cigarette excise tax worked by reducing the average daily smoking of smokers. We also found that the regular drinking behavior of male smokers was more deeply affected by the increased cigarette excise tax than females. (4) Conclusions: Our research results not only give a deeper understanding of the impact of the cigarette excise tax, but also provide an important reference with which to guide future decisions concerning excise taxes imposed on cigarettes.

Decomposition and Comparative Analysis of the Prevalence of and Factors Associated With Smoking Between the Rural and Urban Elderly Population in China: A National Cross-Sectional Study

“…Second, based on regional disparities, we need to pay attention to the elderly smoking situation in the central and western regions of China; it has been recommended to funds for tobacco control should be allotted to the central and western regions ( 20 ). Finally, we suggest that the Chinese government should increase the public awareness of the health hazards of smoking, reduce or ban the advertising of e-cigarettes ( 25 ), compel pictures of the health hazards of tobacco to be printed on the cover of cigarette packets ( 29 , 30 ), and increase the tax on tobacco and use the money to cover health insurance, thus benefiting public health and welfare ( 31 – 33 ). In summary, smoking is still highly prevalent among the elderly in China, and the government should continue to increase tobacco control efforts to promote healthy lifestyles for the elderly.…”

A 114% Cigarette Tax Hike and Drinking Behavior: Results From Nationally Representative Longitudinal Panel Data in Korea

“…2 Recent studies have suggested that we need to evaluate unintended consequences of cigarette taxation on unhealthy behaviors such as drinking behaviors to understand the overall public health impact of cigarette taxation. [2][3][4] For example, if smokers avoid or reduce drinking when they reduce smoking in response to cigarette tax increases, we may expect extended public health benefits of cigarette taxation beyond reduction in smoking. 2 Conversely, if smokers substitute alcohol use for cigarette use after cigarette tax increases, the overall public health benefits induced by cigarette taxation could be undermined due to adverse health impacts of increased alcohol use.…”

“…11,12 To our knowledge, only three studies analyzed drinking behavior as a result of cigarette tax increases at individual level using prospective panel data. 2,4,9 Young-Wolff et al 2 and Zhang and Zheng 4 found that a cigarette tax increase was associated with reduced drinking behaviors among male smokers in the United States and China, respectively. However, Picone et al 9 showed that raising cigarette price was related to increased alcohol consumption.…”

Effects of government cash subsidies on health risk behaviors of the rural elderly: Evidence from social pension expansions in China

“…It is well known that tobacco and alcohol use are major contributors to chronic diseases [3][4][5] . Both behaviors are not only harmful to individual health, but also increase the medical burden on society [6][7][8] . If government cash subsidies promote the use of alcohol and tobacco, the government needs to take certain measures for the health of the population.…”