Literature DB >> 35275359

The Effect of Price and Tax Policies on the Decision to Smoke or Use Smokeless Tobacco in India.

Estelle P Dauchy1, Rijo M John2.   

Abstract

This paper investigates the impact of cigarette prices on adults' smoking and smokeless tobacco (SLT) use initiation and cessation decisions in India from 1980 to 2017. We use individual-level data from the 2017 Global Adult Tobacco Survey (GATS) to recreate the smoking history of current or past adult tobacco users using self-reported data on the years of tobacco use, initiation, and cessation merged with historical data on cigarettes, bidis, and SLT product prices. To estimate the effect of price changes on smoking and SLT use transitions, we use a pooled linear model and propensity score matching (PSM) to construct an artificial treatment group where weights capture the likelihood of being an ever-smoker. We find that price increases are a statistically significant deterrent to smoking initiation, with price elasticity of initiation being on average -0.0236 (CI: -0.024 -0.023) and -0.000428 (0.0 - 0.0) for smoking and SLT, respectively. This implies, for example, that a 10% increase in prices results in a 0.24% smaller smoking initiation and 0.004% smaller SLT use initiation. We find that prices can also encourage quitting, but the effects are not always significant, with elasticities of 0.0218 (CI: 0.017 0.026) and 0.0026 (CI: 0.001 0.004) for smoking and SLT, respectively. This implies that a 10% increase in prices will result in a 0.22% increase in the probability of quitting smoking and a 0.03% increase in the probability of quitting SLT use. The elasticity varied by income group, gender, and between young and all adults, with larger effects among lower-income adults and especially among young females. Higher cigarette prices that can be achieved by tobacco tax increases can significantly reduce initiation and encourage cessation, thus improving public health, especially among the most vulnerable population subgroups.
© 2022. Society for Prevention Research.

Entities:  

Keywords:  Bidis; Chewing tobacco; Goods and Services Tax; India; Tobacco cessation; Tobacco initiation

Mesh:

Year:  2022        PMID: 35275359     DOI: 10.1007/s11121-022-01360-w

Source DB:  PubMed          Journal:  Prev Sci        ISSN: 1389-4986


  11 in total

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3.  A duration analysis of the role of cigarette prices on smoking initiation and cessation in developing countries.

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Journal:  Eur J Health Econ       Date:  2014-03-09

4.  Trends in affordability of tobacco products before and after the transition to GST in India.

Authors:  Rijo M John; Estelle Dauchy
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5.  Estimating wealth effects without expenditure data--or tears: an application to educational enrollments in states of India.

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6.  Trend in the affordability of tobacco products in Bangladesh: findings from the ITC Bangladesh Surveys.

Authors:  Nigar Nargis; Michal Stoklosa; Jeffrey Drope; Geoffrey T Fong; Anne C K Quah; Pete Driezen; Ce Shang; Frank J Chaloupka; A K M Ghulam Hussain
Journal:  Tob Control       Date:  2018-04-19       Impact factor: 7.552

7.  Principal component analysis of socioeconomic factors and their association with malaria in children from the Ashanti Region, Ghana.

Authors:  Anne Caroline Krefis; Norbert Georg Schwarz; Bernard Nkrumah; Samuel Acquah; Wibke Loag; Nimako Sarpong; Yaw Adu-Sarkodie; Ulrich Ranft; Jürgen May
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8.  Estimated impact of the GST on tobacco products in India.

Authors:  Rijo M John; Estelle Dauchy; Mark Goodchild
Journal:  Tob Control       Date:  2018-09-15       Impact factor: 7.552

9.  Changes in the affordability of tobacco products in India during 2007/2008 to 2017/2018: a price-relative-to-income analysis.

Authors:  Mark Goodchild; Praveen Sinha; Vineet Gill Munish; Fikru Tesfaye Tullu
Journal:  WHO South East Asia J Public Health       Date:  2020-04

10.  Relationships between smoking duration, smoking intensity, hypothetical tobacco price increases, and smoking habit change intention among current smokers in Shanghai.

Authors:  Ruiping Wang; Yonggen Jiang; Xin Li; Qi Zhao; Meiying Zhu; Ying Guan; Genming Zhao
Journal:  J Int Med Res       Date:  2019-08-20       Impact factor: 1.671

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