The Effects of Traditional Cigarette and E-Cigarette Taxes on Adult Tobacco Product Use

Authors

Michael F. Pesko, Georgia State UniversityFollow
Charles J. Courtemanche, University of KentuckyFollow
Joanna Catherine Maclean, Temple UniversityFollow

Abstract

We study the effects of traditional cigarette tax rate changes and e-cigarette tax adoption on use of these products among US adults. Data are drawn from the Behavioral Risk Factor Surveillance System and National Health Interview Survey data over the period 2011to 2017. Using a difference-in-differences model, we find that higher traditional cigarette taxes reduce adult traditional cigarette use and increase adult e-cigarette use, suggesting that the products are economic substitutes. E-cigarette tax adoption reduces e-cigarette use, with some heterogeneity across groups, and dilutes the own-tax responsiveness of traditional cigarettes.

Document Type

Research Paper

Publication Date

6-2019

Working Paper Number

Working Paper 22

Notes/Citation Information

JEL codes: H2, I12, I18

Repository Citation

Pesko, Michael F.; Courtemanche, Charles J.; and Maclean, Joanna Catherine, "The Effects of Traditional Cigarette and E-Cigarette Taxes on Adult Tobacco Product Use" (2019). Institute for the Study of Free Enterprise Working Papers. 8.
https://uknowledge.uky.edu/isfe_papers/8