IDEAS home Printed from https://ideas.repec.org/a/eee/hepoli/v121y2017i12p1288-1295.html
   My bibliography  Save this article

The effect of taxation and regulation on cigarette smoking: Fresh evidence from Turkey

Author

Listed:
  • Cetin, Tamer

Abstract

Enacting Law No 5247 in May 2008, Turkey has initiated crucial anti-tobacco policies in the last decade. This paper aims to reveal on the effect of anti-tobacco policies such as excise taxes and regulations on cigarette smoking. To this aim, I empirically investigate the long-term dynamics of demand for cigarettes in Turkey through the OLS estimation strategy under various scenarios and models. Using monthly and quarterly data that cover the pre- and post- anti-smoking policy periods, I estimate demand elasticities and compare the pre- and post- taxation and regulation terms. The results presented in the paper confirm that taxation and regulation have affected the long-term dynamics of demand for cigarettes. The price and income elasticities of demand for cigarettes are significantly higher than the previous literature on Turkey. Demand elasticities have increased on average in the anti-tobacco policies period.

Suggested Citation

  • Cetin, Tamer, 2017. "The effect of taxation and regulation on cigarette smoking: Fresh evidence from Turkey," Health Policy, Elsevier, vol. 121(12), pages 1288-1295.
    • Handle: RePEc:eee:hepoli:v:121:y:2017:i:12:p:1288-1295
    DOI: 10.1016/j.healthpol.2017.09.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0168851017302439
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.healthpol.2017.09.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Leu, Robert E., 1984. "Anti-smoking publicity, taxation, and the demand for cigarettes," Journal of Health Economics, Elsevier, vol. 3(2), pages 101-116, August.
    3. Chaloupka, Frank J. & Warner, Kenneth E., 2000. "The economics of smoking," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 29, pages 1539-1627, Elsevier.
    4. Lance, Peter M. & Akin, John S. & Dow, William H. & Loh, Chung-Ping, 2004. "Is cigarette smoking in poorer nations highly sensitive to price?: Evidence from Russia and China," Journal of Health Economics, Elsevier, vol. 23(1), pages 173-189, January.
    5. Jason Abrevaya & Laura Puzzello, 2012. "Taxes, Cigarette Consumption, and Smoking Intensity: Comment," American Economic Review, American Economic Association, vol. 102(4), pages 1751-1763, June.
    6. Onder, Zeynep, 2002. "THE ECONOMICS OF TOBACCO IN TURKEY : New evidence and demand estimates," University of California at San Francisco, Center for Tobacco Control Research and Education qt2n93w0ph, Center for Tobacco Control Research and Education, UC San Francisco.
    7. Gruber, Jonathan & Sen, Anindya & Stabile, Mark, 2003. "Estimating price elasticities when there is smuggling: the sensitivity of smoking to price in Canada," Journal of Health Economics, Elsevier, vol. 22(5), pages 821-842, September.
    8. 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.
    9. Abdulbaki Bilgic & Wojciech Florkowski & Cuma Akbay, 2010. "Demand for cigarettes in Turkey: an application of count data models," Empirical Economics, Springer, vol. 39(3), pages 733-765, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sílvia Font-Mayolas & Mark J. M. Sullman & Maria-Eugenia Gras, 2019. "Sex and Polytobacco Use among Spanish and Turkish University Students," IJERPH, MDPI, vol. 16(24), pages 1-14, December.
    2. Zili Zhang & Rong Zheng, 2020. "The Impact of Cigarette Excise Tax Increases on Regular Drinking Behavior: Evidence from China," IJERPH, MDPI, vol. 17(9), pages 1-12, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abdulbaki Bilgic & Wojciech Florkowski & Cuma Akbay, 2010. "Demand for cigarettes in Turkey: an application of count data models," Empirical Economics, Springer, vol. 39(3), pages 733-765, December.
    2. Rajeev K. Goel & Michael A. Nelson, 2006. "The Effectiveness of Anti‐Smoking Legislation: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 325-355, July.
    3. Pearl Bader & David Boisclair & Roberta Ferrence, 2011. "Effects of Tobacco Taxation and Pricing on Smoking Behavior in High Risk Populations: A Knowledge Synthesis," IJERPH, MDPI, vol. 8(11), pages 1-22, October.
    4. Sen Anindya & Ariizumi Hideki & Driambe Daciana, 2010. "Do Changes In Cigarette Taxes Impact Youth Smoking? Evidence from Canadian Provinces," Forum for Health Economics & Policy, De Gruyter, vol. 13(2), pages 1-25, August.
    5. Stehr, Mark, 2005. "Cigarette tax avoidance and evasion," Journal of Health Economics, Elsevier, vol. 24(2), pages 277-297, March.
    6. Hammar, Henrik & Carlsson, Fredrik, 2001. "Smokers' Decisions To Quit Smoking," Working Papers in Economics 59, University of Gothenburg, Department of Economics.
    7. Christopher Carpenter & Philip J. Cook, 2007. "Cigarette Taxes and Youth Smoking: New Evidence from National, State, & Local Youth Risk Behavior Surveys," NBER Working Papers 13046, National Bureau of Economic Research, Inc.
    8. Tauras, John A., 2004. "Public policy and some-day smoking among adults," Journal of Applied Economics, Universidad del CEMA, vol. 7(1), pages 1-26, May.
    9. Sari, Nazmi, 2013. "On anti-smoking regulations and tobacco consumption," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 43(C), pages 60-67.
    10. Carlo Ciccarelli & Pierpaolo Pierani & Silvia Tiezzi, 2014. "Secular trends in tobacco consumption: the case of Italy, 1871-2010," Department of Economics University of Siena 700, Department of Economics, University of Siena.
    11. Salti, Nisreen & Brouwer, Elizabeth & Verguet, Stéphane, 2016. "The health, financial and distributional consequences of increases in the tobacco excise tax among smokers in Lebanon," Social Science & Medicine, Elsevier, vol. 170(C), pages 161-169.
    12. Eleni Raptou & Konstadinos Mattas & Efthimia Tsakiridou & Constantinos Katrakilidis, 2005. "Factors Affecting Cigarette Demand," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 11(3), pages 275-290, August.
    13. Leah K. Lakdawala & David Simon, 2017. "The Intergenerational Consequences of Tobacco Policy: A Review of Policy's Influence on Maternal Smoking and Child Health," Southern Economic Journal, John Wiley & Sons, vol. 84(1), pages 229-274, July.
    14. Adem Aksoy & Abdulbaki Bilgic & Steven T. Yen & Faruk Urak, 2019. "Determinants of Household Alcohol and Tobacco Expenditures in Turkey," Journal of Family and Economic Issues, Springer, vol. 40(4), pages 609-622, December.
    15. Hong Liu & John A. Rizzo & Qi Sun & Fang Wu, 2015. "How Do Smokers Respond to Cigarette Taxes? Evidence from China's Cigarette Industry," Health Economics, John Wiley & Sons, Ltd., vol. 24(10), pages 1314-1330, October.
    16. Sunday Azagba & Mesbah Sharaf, 2011. "Cigarette Taxes and Smoking Participation: Evidence from Recent Tax Increases in Canada," IJERPH, MDPI, vol. 8(5), pages 1-18, May.
    17. Hammar, Henrik, 2004. "Restaurant owner perceptions of the effects of a smoking ban," Health Policy, Elsevier, vol. 70(2), pages 243-254, November.
    18. Powell, Lisa M. & Tauras, John A. & Ross, Hana, 2005. "The importance of peer effects, cigarette prices and tobacco control policies for youth smoking behavior," Journal of Health Economics, Elsevier, vol. 24(5), pages 950-968, September.
    19. Susan Averett & Yang Wang, 2013. "The Effects Of Earned Income Tax Credit Payment Expansion On Maternal Smoking," Health Economics, John Wiley & Sons, Ltd., vol. 22(11), pages 1344-1359, November.
    20. Matthew C. Farrelly & Jeremy W. Bray & Terry Pechacek & Trevor Woollery, 2001. "Response by Adults to Increases in Cigarette Prices by Sociodemographic Characteristics," Southern Economic Journal, John Wiley & Sons, vol. 68(1), pages 156-165, July.

    More about this item

    Keywords

    Tobacco industry; Taxation; Public policy;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:hepoli:v:121:y:2017:i:12:p:1288-1295. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu or the person in charge (email available below). General contact details of provider: http://www.elsevier.com/locate/healthpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.