Will Plain Packaging Reduce Cigarette Consumption?
AbstractThe Australian Parliament has passed legislation compelling tobacco products to be sold in ?plain packaging?. This paper reviews this legislation and its likely effects on prices, market structure in the tobacco industry and on smoking behaviour. Industry changes following two previous sets of restrictions on advertising are examined for relevant empirical evidence. Without offsetting tax increases the legislation will plausibly reduce prices but significant entry into the industry and greater consumption of counterfeit/illegal cigarettes are unlikely. Provided that tax increases offset any induced fall in prices that might result, plain packaging will reduce cigarette consumption.
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Bibliographic InfoArticle provided by The Economic Society of Australia in its journal Economic Papers.
Volume (Year): 31 (2012)
Issue (Month): 3 (09)
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Other versions of this item:
- Harry Clarke & David Prentice, 2012. "Will Plain Packaging Reduce Cigarette Consumption?," Working Papers 2012.03, School of Economics, La Trobe University.
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- K2 - Law and Economics - - Regulation and Business Law
- K32 - Law and Economics - - Other Substantive Areas of Law - - - Environmental, Health, and Safety Law
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
- M3 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising
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