Impact of Cigarette Prices on Cigarette Sales and Consumption in Malaysia

2021 ◽  
Author(s):  
Wency Bui ◽  
Norashidah Mohamed Nor
Keyword(s):  
Cigarette Prices

scholarly journals Cigarette Prices and Smoking Behavior in Israel: Findings from a National Study of Adults (2002–2017)

2021 ◽  
Vol 18 (16) ◽  
pp. 8367
Author(s):  
Kerem Shuval ◽  
Michal Stoklosa ◽  
Nigar Nargis ◽  
Jeffrey Drope ◽  
Shay Tzafrir ◽  
...  
Keyword(s):  
Price Elasticity ◽  
Household Income ◽  
Smoking Prevalence ◽  
Smoking Behavior ◽  
Current Smoking ◽  
Smoking Intensity ◽  
Kap Survey ◽  
Unit Increase ◽  
Smoking Prevalence And Intensity ◽  
Cigarette Prices

Tobacco taxation and price policies are considered the most effective for lowering demand for tobacco products. While this statement is based on research from numerous countries, scant evidence exists on this topic for Israel. Accordingly, we assessed the association between cigarette prices and smoking prevalence and intensity from a national sample of adults in Israel (2002–2017). Data on smoking behavior were derived from the Israeli Knowledge Attitudes and Practices (KAP) survey, a repeated cross-sectional survey. Price information is from the Economist Intelligence Unit (EIU) since it was not collected in the KAP survey. We used the price of a pack of 20 cigarettes for Marlboro and the local brand. These two price variables were the primary independent variables, and we adjusted for inflation. The dependent variables were current smoking (yes/no) and smoking intensity, defined as the number of cigarettes smoked per week. Multivariable analysis was employed using a two-part model while adjusting for covariates. The first step of the model utilized logistic regression with current smoking as the dependent variable. The second step examining smoking intensity as the dependent variable, used OLS regression. Price elasticity was estimated as well. Analysis revealed that a one-unit increase (Israeli currency) in the price of local brand of cigarettes was related to 2.0% (OR = 0.98; 95%CI 0.98, 0.99) lower odds of being a current smoker, adjusting for covariates including household income. Moreover, a one unit increase in the price of the local brand of cigarettes was related to consuming 1.49 (95% CI −1.97, −1.00) fewer weekly cigarettes, controlling for household income and covariates. Similar results were found with the Marlboro cigarette prices. The total price elasticity of cigarette demand, given by the sum of price elasticities of smoking prevalence and intensity, showed that a 10.0% increase in the price is associated with a 4.6–9.2% lower cigarette consumption among Israeli adults. Thus, increasing cigarette prices will likely lead to a reduction in cigarette smoking thereby improving public health in Israel.

Taxes, Cigarette Consumption, and Smoking Intensity: Comment

2012 ◽  
Vol 102 (4) ◽  
pp. 1751-1763 ◽  
Author(s):  
Jason Abrevaya ◽  
Laura Puzzello
Keyword(s):  
Cigarette Consumption ◽  
Standard Errors ◽  
Sampling Weights ◽  
Compensatory Behavior ◽  
Smoking Intensity ◽  
Cigarette Taxes ◽  
Larger Sample ◽  
Cigarette Prices

This paper re-examines Adda and Cornaglia's (2006) evidence on the compensatory behavior of smokers who, in face of higher taxes, are found to reduce their consumption of cigarettes while maintaining their cotinine––a biomarker for nicotine––levels constant. This comment examines the robustness of the empirical findings in Adda and Cornaglia (2006) using: appropriate clustered standard errors, a larger sample from the same years and survey as the data in Adda and Cornaglia (2006), cigarette-prices instead of and in addition to cigarette-taxes, and sampling weights. The empirical findings of Adda and Cornaglia (2006) are not robust. Further, little systematic evidence of compensatory behavior is found among subsamples of smokers

scholarly journals Chinese smokers’ cigarette purchase behaviours, cigarette prices and consumption: findings from the ITC China Survey

2013 ◽  
Vol 23 (suppl 1) ◽  
pp. i67-i72 ◽  
Author(s):  
Jidong Huang ◽  
Rong Zheng ◽  
Frank J Chaloupka ◽  
Geoffrey T Fong ◽  
Qiang Li ◽  
...  
Keyword(s):  
Cigarette Prices

scholarly journals Youth Smoking, Cigarette Prices, and Anti-Smoking Sentiment

2006 ◽  
Author(s):  
Philip DeCicca ◽  
Donald Kenkel ◽  
Alan Mathios ◽  
Yoon-Jeong Shin ◽  
Jae-Young Lim
Keyword(s):  
Youth Smoking ◽  
Smoking Cigarette ◽  
Cigarette Prices

scholarly journals How Raising Tobacco Prices Affects the Decision to Start and Quit Smoking: Evidence from Argentina

2019 ◽  
Vol 16 (19) ◽  
pp. 3622
Author(s):  
Martin Gonzalez-Rozada ◽  
Giselle Montamat
Keyword(s):  
Price Elasticity ◽  
Continuous Time ◽  
Population Model ◽  
Smoking Habit ◽  
The Other ◽  
Smoking Onset ◽  
Other Hand ◽  
Split Population Model ◽  
Total Price ◽  
Cigarette Prices

We used a two-part model for the estimation of the price elasticity of participation and consumption of cigarettes by the duration of the smoking habit and a continuous-time split-population model for the estimation of prevalence and duration of smoking onset and smoking addiction, allowing for covariates in the participation component of the model. Results: We computed the total price elasticity of consumption of cigarettes by quartiles of addiction and found that for the people located in the lowest quartile of addiction the total price elasticity is around −0.51; while for those located in the highest quartile of addiction this figure is only −0.19. Then, a 10% increase in cigarette prices, via taxes, reduces the consumption of those in the early stages of the addiction by 5% and for those with a longer history of addiction by only 1.9%. Estimating the continuous-time split-population model we found that, at the mean starting age of 15 years, an increase of 10% in real cigarette prices is expected to delay smoking onset by almost two and a half years. On the other hand, the same policy is less effective to reduce the duration of the habit because there is no meaningful relationship between the duration of the smoking habit and the real price of cigarettes.The policy of raising cigarette excise taxes, to increment prices, seems to be more effective to delay smoking onset. On the other hand, the same policy is less effective to reduce the duration of the habit. A policy recommendation that emerges from this evidence is that for people with a developed addiction a combination of increasing taxes and other public health policies, like cessation therapies, could prove more effective.

scholarly journals Price elasticity of demand for cigarettes in Bosnia and Herzegovina: microdata analysis

2020 ◽  
Vol 29 (Suppl 5) ◽  
pp. s304-s309
Author(s):  
Dragan Gligorić ◽  
Anđela Pepić ◽  
Saša Petković ◽  
Jovo Ateljević ◽  
Borislav Vukojević
Keyword(s):  
Bosnia And Herzegovina ◽  
Price Elasticity ◽  
Demand Model ◽  
Middle Income ◽  
Excise Tax ◽  
Middle Income Countries ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand ◽  
Main Driver ◽  
Cigarette Prices

BackgroundBosnia and Herzegovina (B&H) is among the top 10 countries in the world in terms of number of smokers. The cigarette prices in B&H are under a direct impact of state excise tax policy. The specific excise on cigarettes was introduced in B&H in 2009. Since then it has been increasing every year thus being the main driver of cigarette prices growth.MethodsIn this paper we estimate price elasticity of demand for cigarettes following Deaton demand model and apply it on microdata obtained from the Household Budget Surveys in B&H conducted in 2011 and 2015. Deaton model uses within-cluster information to estimate total expenditure elasticities and then uses between-cluster information to estimate price elasticities. For B&H, the cluster is defined as a municipality × in the year t. Our sample contains 14 252 households, divided into 267 clusters.ResultsOur results show that the price elasticity is statistically significant and amounts to −1.366. This means that if cigarette prices in B&H are increased by 10%, the demand for cigarettes would decrease by 13.66%.ConclusionsWe found a negative price elasticity of demand for cigarettes of −1.366. These results of the econometric estimate of elasticity of demand are more elastic compared with the results of similar surveys carried out on the sample of low and middle-income countries. It demonstrates that the demand for cigarettes responds strongly to the price increase.

scholarly journals Effects of global and domestic tobacco control policies on cigarette consumption per capita: an evaluation using monthly data in China

BMJ Open ◽  
2019 ◽  
Vol 9 (6) ◽  
pp. e025092 ◽  
Author(s):  
Xiaoxin Xu ◽  
Xiulan Zhang ◽  
Teh Wei Hu ◽  
Leonard S Miller ◽  
Mengnan Xu
Keyword(s):  
Tobacco Control ◽  
National Policy ◽  
Tobacco Consumption ◽  
Cigarette Consumption ◽  
Policy Changes ◽  
Control Policies ◽  
Tobacco Control Policies ◽  
Per Capita ◽  
The Impact ◽  
Cigarette Prices

IntroductionChina consumes 44% of the world’s cigarettes. Robust tobacco control measures are needed to contain the trend of increasing cigarette consumption. This paper examines the effectiveness of policy interventions introduced in China on reducing the country’s tobacco use.MethodsThe paper uses data on China’s monthly cigarette consumption per capita from January 2000 to June 2017 to estimate the impact of specific policies on China’s tobacco consumption. Tobacco consumption is calculated from monthly sales data from the China National Tobacco Corporation and demographic data from the China National Bureau of Statistics. The policies studied include the WHO Framework Convention on Tobacco Control (FCTC), national tobacco-related policy changes and two tobacco tax increases implemented in China during the study period. Segmented regression analysis is used to estimate the immediate effects of the policies studied and changes in the time trends resulted from these policy changes.FindingsThe impact of national policy changes in China is almost 20 times greater than the impact of the WHO FCTC treaty itself, and national policy changes in tobacco control are a determining factor in reversing the trend of increasing tobacco consumption in China. The 2015 tax increase, which raised retail cigarette prices, produced both immediate and trend effects, with a total incremental effect 7.8 times that of the 2009 tax increase, which did not result in higher cigarette prices for the consumer.InterpretationsTranslating global tobacco control policies into domestic policies will generate a much greater impact on reducing average cigarette consumption, and tobacco taxes that are reflected in the retail prices of cigarettes will be more effective in reducing cigarette consumption.

scholarly journals Is youth smoking responsive to cigarette prices? Evidence from low- and middle-income countries

2011 ◽  
Vol 20 (6) ◽  
pp. 419-424 ◽  
Author(s):  
D. Kostova ◽  
H. Ross ◽  
E. Blecher ◽  
S. Markowitz
Keyword(s):  
Youth Smoking ◽  
Middle Income ◽  
Middle Income Countries ◽  
Low And Middle Income ◽  
Cigarette Prices
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