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The Economic Impact of Clean Indoor Air Laws: A Review of Alternative Approaches and of Empirical findings

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Author Info
Silvia Tiezzi ()
Abstract

This paper surveys existing approaches and empirical results to estimating the impact of Clean Indoor Air Laws on smoking behaviour, on the one hand, and on the hospitality industry, on the other. The purpose is twofold: first, identifying important gaps, if any, in the literature that could be addressed in future research; second, trying to unfold the reasons of the wide heterogeneity in the results and, as a consequence, to provide an assessment of the reliability of those results. The discussion begins with a look at the recent regulations that motivate the study of the impact of Clean Indoor Air Laws, with a special emphasis on European smoking bans. This is followed by critical reviews of studies and approaches to estimating the economic impact of Clean Indoor Air Laws. We can distinguish between a direct and an indirect effect of anti-smoking regulations: the direct effect on smoking behaviour and the indirect effect on the economic performance of the hospitality industry. The first review assesses those studies and approaches that have focused on the direct impact on smoking behaviour. The second review analyzes estimation of the economic impact on the hospitality industry. At the end of each of the two broad reviews, we summarize a selection of the empirical findings. The fifth section explores methodological differences and problems that may affect the empirical analysis reviewed in the previous sections with the purpose of shedding light on the wide heterogeneity in the empirical findings. The concluding section asks whether the studies reviewed in this paper place us in a better position to assess the economic impact of Clean Indoor Air Laws

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Paper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 570.

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Date of creation: Sep 2009
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Handle: RePEc:usi:wpaper:570

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Related research
Keywords: smoking bans; smoking participation; smoking consumption;

Find related papers by JEL classification:
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
K32 - Law and Economics - - Other Substantive Areas of Law - - - Environmental, Health, and Safety Law

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  1. Ayda A. Yurekli & Ping Zhang, 2000. "The impact of clean indoor-air laws and cigarette smuggling on demand for cigarettes: an empirical model," Health Economics, John Wiley & Sons, Ltd., vol. 9(2), pages 159-170.
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    Other versions:
  5. John A. Tauras, 2006. "Smoke-Free Air Laws, Cigarette Prices, and Adult Cigarette Demand," Economic Inquiry, Oxford University Press, vol. 44(2), pages 333-342, April. [Downloadable!] (restricted)
  6. Scott Adams & Chad D. Cotti, 2007. "The Effect of Smoking Bans on Bars and Restaurants: An Analysis of Changes in Employment," The B.E. Journal of Economic Analysis & Policy, Berkeley Electronic Press, vol. 7(1). [Downloadable!]
  7. Benjamin C. Alamar & Stanton A. Glantz, 2004. "Smoke-free Ordinances Increase Restaurant Profit and Value," Contemporary Economic Policy, Western Economic Association International, vol. 22(4), pages 520-525, October. [Downloadable!] (restricted)
  8. William N. Evans & Matthew C. Farrelly & Edward Montgomery, 1999. "Do Workplace Smoking Bans Reduce Smoking?," American Economic Review, American Economic Association, vol. 89(4), pages 728-747, September. [Downloadable!] (restricted)
    Other versions:
  9. Wasserman, Jeffrey & Manning, Willard G. & Newhouse, Joseph P. & Winkler, John D., 1991. "The effects of excise taxes and regulations on cigarette smoking," Journal of Health Economics, Elsevier, vol. 10(1), pages 43-64, May. [Downloadable!] (restricted)
  10. Rajeev K. Goel & Michael A. Nelson, 2006. "The Effectiveness of Anti-Smoking Legislation: A Review," Journal of Economic Surveys, Blackwell Publishing, vol. 20(3), pages 325-355, 07. [Downloadable!] (restricted)
  11. David W. Cowling & Philip Bond, 2005. "Smoke-free laws and bar revenues in California - the last call," Health Economics, John Wiley & Sons, Ltd., vol. 14(12), pages 1273-1281. [Downloadable!]
  12. Christopher Carpenter, 2007. "How Do Workplace Smoking Laws Work? Quasi-Experimental Evidence from Local Laws in Ontario, Canada," NBER Working Papers 13133, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  14. Frank J. Chaloupka & Henry Saffer, 1992. "Clean Indoor Air Laws And The Demand For Cigarettes," Contemporary Economic Policy, Western Economic Association International, vol. 10(2), pages 72-83, 04. [Downloadable!] (restricted)
  15. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695 Elsevier. [Downloadable!] (restricted)
    Other versions:
  16. Chaloupka, Frank J. & Wechsler, Henry, 1997. "Price, tobacco control policies and smoking among young adults," Journal of Health Economics, Elsevier, vol. 16(3), pages 359-373, June. [Downloadable!] (restricted)
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  17. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August. [Downloadable!] (restricted)
    Other versions:
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