The Welfare Effects of Tobacco Taxation: Estimates for 5 Countries/Regions
AbstractThis paper provides estimates of the economic welfare effects of tobacco taxation in India, S.Africa, S.Korea, Japan and the European Union. It argues that past studies of the cost-benefits of smoking are flawed as they fail to net out Paretoirrelevant pecuniary externalities. It estimates tobacco demand for both the myopic and rational addiction models and finds the latter invariably perform better. It finds that the net welfare losses associated with (a) current tax levels (b)an increase over current taxation of 10% and (c) an increase of 10% a year for !0 years in all these countries, but particularly in the poorest, are large. Cet article fournit des estimations des effets des taxes sur le tabac sur le bien-Ãªtre : lâ€™Inde, lâ€™Afrique du Sud, la CorÃ©e du Sud, le Japon et lâ€™Union EuropÃ©enne. Lâ€™article soutient que les analyses antÃ©rieures des coÃ»ts et des bÃ©nÃ©fices de la cigarette sont erronÃ©es car elles ne tiennent pas compte des externalitÃ©s pÃ©cuniaires non pertinentes dans un monde parÃ©tien. Il donne des estimations de la demande non tant pour les modÃ¨les myopes que pour ceux supposant une addiction rationnelle et constate que ces derniers donnent de meilleurs rÃ©sultats. Il en ressort aussi que les pertes nettes de bien-Ãªtre associÃ©es (a) aux niveaux actuels de taxes, (b) Ã une augmentation de 10% des taxes actuelles et (c) Ã une augmentation annuelle de 10% des taxes sur 10 ans dans toutes les zones Ã©tudiÃ©es, mais particuliÃ¨rement dans les plus pauvres dâ€™entre elles, sont consÃ©quentes.
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Bibliographic InfoArticle provided by De Gruyter in its journal Journal des Economistes et des Etudes Humaines.
Volume (Year): 13 (2003)
Issue (Month): 1 ()
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Web page: http://www.degruyter.com
Find related papers by JEL classification:
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
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