Oct 3, 2012

Tobacco Taxes

Our evidence suggests that increases in cigarette taxes are associated with small decreases in cigarette consumption and that it will take sizable tax increases, on the order of 100%, to decrease adult smoking by as much as 5%.
Source: A new paper by Callison and Kaestner (August 2012). The reduction in smoking worldwide (probably since the mid-1970s) is due to other reasons (more research and information on its link to cancer, social pressure, and regulation - banning smoking in public places, among others). In other words, if the objective is to reduce tobacco consumptions, other measures have been more effective.

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