Macro-social influences: The effects of prices and tobacco-control policies on the demand for tobacco products

Abstract

For almost three decades, numerous econometric studies have researched the impact of prices and tobacco-control policies on cigarette smoking and other tobacco use. This paper reviews some of the difficulties inherent in that research, including the problems associated with available data, and methodological problems that arise in estimation. This is followed by a brief summary of the key findings from econometric studies of tobacco use. Particularly important for policymakers is the consistent evidence that emerges from these studies showing the effects of higher prices for cigarettes and other tobacco products, with growing evidence that youth and young adults are relatively more responsive to price than older adults. Similarly, these studies produce consistent evidence that stronger restrictions on smoking lead to reduced smoking. In addition, the mixed evidence on the impact of other tobacco control policies and advertising on demand is reviewed. The paper concludes with a discussion of areas where transdisciplinary collaborations and research could be particularly useful in improving our understanding of the impact of macro-social influences on tobacco use.