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Taxation and anti-smoking campaigns: Complementary policies in tobacco control

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  • Colombo, Luca
  • Galmarini, Umberto

Abstract

We examine the optimal design of policies directed at regulating tobacco consumption through two types of instruments: taxation and anti-smoking mass media campaigns. We find that the main role of taxation is to correct for the population-average internal costs of smoking, while anti-smoking campaigns serve a complementary role. Namely, they add to the social welfare benefits of tobacco regulation as they are relatively more effective than taxation at discouraging smoking by individuals characterized by low degrees of self-control and high smoke-related health

Suggested Citation

  • Colombo, Luca & Galmarini, Umberto, 2023. "Taxation and anti-smoking campaigns: Complementary policies in tobacco control," Journal of Policy Modeling, Elsevier, vol. 45(1), pages 31-57.
    • Handle: RePEc:eee:jpolmo:v:45:y:2023:i:1:p:31-57
    DOI: 10.1016/j.jpolmod.2022.11.006
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    More about this item

    Keywords

    Harmful consumption; Tobacco control policies; Corrective taxation; Anti-smoking campaigns;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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