The impact of vaping and regulatory environment on cigarette demand: behavioral economic perspective across four countries

Heckman, Bryan W.; Fong, Geoffrey T.; Borland, Ron; Hitchman, Sara C.; O’Connor, Richard J.; Bickel, Warren K.; Stein, Jeffrey S.; Yong, Hua‐Hie; Nahhas, Georges J.; Pope, Derek A.; Shang, Ce; Cheng, Kai‐Wen; Levy, David T.; Cummings, K. Michael

doi:10.1111/add.14538

Cited by 11 publications

(7 citation statements)

References 26 publications

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“…Among them, the relatively lower cost of vaping compared with smoking is thought to be a key factor. Recent evidence suggests that NVP use and sales are price-sensitive, such that an increase of NVP price is associated with a decrease in NVP sales and use prevalence 3–7. In addition to being sensitive to its own price, NVP sales and use are sensitive to the prices of other nicotine products.…”

Section: Introductionmentioning

confidence: 99%

Costs of vaping: evidence from ITC Four Country Smoking and Vaping Survey

et al. 2020

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Section: Introductionmentioning

confidence: 99%

Costs of vaping: evidence from ITC Four Country Smoking and Vaping Survey

et al. 2020

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“…Our estimations of α for FM cigarettes are comparable with the estimations for people who smoke daily by Heckman et al in their four-country comparison. 14 Our estimations for P max and breakpoint for FM cigarettes are much higher. For the United States, England, and Canada they concluded an approximately five- ( P max ) or tenfold (breakpoint) increase from market prices, while in Australia a four- ( P max ) or eightfold (breakpoint) increase would suffice.…”

Section: Discussionmentioning

confidence: 55%

“… 21 Research suggests that individuals who do not smoke daily may respond more strongly to price changes than those who do. 14 , 40 Many participants were willing to continue to consume tobacco at the highest price that we presented them with (€200 per pack of FM cigarettes) in our CPT, suggesting that our price range used may have been too small. The previously mentioned Heckman et al study was the only study we found which also reported that not all respondents (16.1%) reach breakpoint.…”

Section: Discussionmentioning

confidence: 99%

Demand for Factory-Made Cigarettes and Roll-Your-Own Tobacco and Differences Between Age and Socioeconomic Groups: Findings From the International Tobacco Control Netherlands Survey

Geboers

Shang

Nagelhout

et al. 2021

Nicotine &Amp; Tobacco Research

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Introduction Macroeconomic studies have shown that young individuals who smoke, and have a low socioeconomic status respond more strongly to price increases. Most of this evidence stems from research on factory-made (FM) cigarettes. With the rising popularity of roll-your-own (RYO) tobacco, there is a need for studies on cigarette demand that distinguish between both. Aims and Methods This study examined whether individual demand differed for FM and RYO tobacco, and across age, and socioeconomic (income and education) groups. Purchase tasks for FM and RYO cigarettes were included in the 2020 International Tobacco Control (ITC) Netherlands Survey. Adults who smoke daily (n = 1620) stated how many cigarettes they would smoke in 24 hours across eight prices. Four demand indices were derived: intensity (consumption at zero costs), alpha (rate of change in elasticity), Pmax (turning point elasticity), and breakpoint (lowest price where consumption equals zero). The indices were tested for subgroup differences. Results Individuals who smoke RYO tobacco indicated higher intensity, and greater alpha than individuals who smoke FM cigarettes. Participants aged 25–39 had lower Pmax, and 18–24 year olds displayed higher breakpoints. Participants with low income displayed higher intensity, and lower Pmax than other income groups. No associations were found with education. Conclusions Individuals who smoke RYO tobacco indicated higher price sensitivity than those smoking FM cigarettes, supporting the need to harmonize tobacco taxation. Taxation may be especially beneficial to reducing consumption among individuals with a low income or smoke RYO tobacco. Substantially higher prices are needed in the Netherlands to achieve the desired results. Implications Individuals who smoke daily were willing to pay substantially higher prices than the current market prices, indicating the room and need for much higher taxation levels. Demand for RYO tobacco was more sensitive to price changes than demand for FM cigarettes. Taxation should be raised at equivalent rates for FM and RYO cigarettes. Taxation appears to be especially effective in reducing consumption among people who smoke RYO tobacco and low-income individuals. It remains important to combine increased taxation with other tobacco control measures.

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“…We selected Canada, UK and Australia as jurisdictions that have adopted varied regulatory approaches to vaping based on differential levels of vaping regulations 9 10 and availability of data on e-cigarette use and smoking. In Canada, vaping regulations vary substantially across provinces, hence necessitating a province-specific examination.…”

Section: Methodsmentioning

confidence: 99%

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

Essue

Jha

2022

BMJ Open

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ObjectiveWe sought to quantify the impact of vaping introduction on cigarette smoking across settings with varied regulatory approaches to vaping.DesignInterrupted time series analysis, adjusted for cigarette tax levels.SettingFour Canadian provinces, UK and Australia.ParticipantsEntire population of smokers in each country.InterventionsThe year that vaping was widely introduced in each country.Primary and secondary outcome measuresThe primary outcome is cigarette consumption per adult, and the secondary outcome is smoking prevalence among young adults.ResultsBased on allowable nicotine levels, restrictions on e-cigarette advertising, sales and access, and taxation, the least to most restrictive jurisdictions were, in order, Alberta, Ontario, Quebec and British Columbia (all in Canada), UK and Australia. In most, but not all, settings where higher nicotine content was permitted in vaping products (66 mg/mL), vaping introduction led to a reduction in cigarette consumption per capita (Ontario: p=0.037, Quebec: p=0.007) or in smoking prevalence among young adults (Alberta men, p=0.027; Quebec men, p=0.008; Quebec women, p=0.008). In the UK, where the maximum permitted nicotine content in vaping products was 20 mg/mL, vaping introduction slowed the declining trend in cigarette smoking among men aged 16–24 years (p=0.031) and 25–34 years (p=0.002) but not in cigarette consumption per adult. In Australia, where nicotine was not permitted in e-cigarettes, e-cigarette introduction slowed the declining trend in cigarette consumption per capita and in smoking prevalence among men aged 18–24 years (cigarette consumption: p=0.015, prevalence: p=0.044).ConclusionIn environments that enable substitution of cigarettes with e-cigarettes, e-cigarette introduction reduces overall cigarette consumption. Thus, to reduce cigarette smoking, policies that encourage adults to substitute cigarette smoking with vaping should be considered.

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The impact of vaping and regulatory environment on cigarette demand: behavioral economic perspective across four countries

Cited by 11 publications

References 26 publications

Costs of vaping: evidence from ITC Four Country Smoking and Vaping Survey

Costs of vaping: evidence from ITC Four Country Smoking and Vaping Survey

Demand for Factory-Made Cigarettes and Roll-Your-Own Tobacco and Differences Between Age and Socioeconomic Groups: Findings From the International Tobacco Control Netherlands Survey

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

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