IDEAS home Printed from
   My bibliography  Save this paper

Substitutes or Complements? Alcohol, Cannabis and Tobacco


  • Lisa Cameron

    (University of Melbourne)

  • Jenny Williams

    (School of Economics, University of Adelaide)


This paper estimates the price responsiveness of cannabis, alcohol and cigarette use. Individual level data from four waves of the National Drug Strategy Household Survey are merged with previously unavailable state level data on cannabis prices, and ABS alcohol and tobacco price indices. In addition to own price effects, we estimate cross price effects and the impact of differing legal regimes for cannabis on the use of these three drugs. Establishing the nature of the interdependencies between cannabis, alcohol and cigarettes is important in the development of drug policy so that a policy directed at one drug does not unintentionally affect the'demand for other drugs. We find that participation in the use of all three drugs is responsive to own prices and that decriminalisation of cannabis leads to higher cannabis use. Cannabis is found to be a substitute for alcohol and a complement to tobacco. Alcohol and tobacco are found to be complements.

Suggested Citation

  • Lisa Cameron & Jenny Williams, 1999. "Substitutes or Complements? Alcohol, Cannabis and Tobacco," School of Economics Working Papers 1999-02, University of Adelaide, School of Economics.
  • Handle: RePEc:adl:wpaper:1999-02

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:


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

    Cited by:

    1. J. Williams & Rosalie Liccardo Pacula & Frank J. Chaloupka & Henry Wechsler, 2004. "Alcohol and marijuana use among college students: economic complements or substitutes?," Health Economics, John Wiley & Sons, Ltd., vol. 13(9), pages 825-843.
    2. Vinish Shrestha, 2015. "Estimating the Price Elasticity of Demand for Different Levels of Alcohol Consumption among Young Adults," American Journal of Health Economics, MIT Press, vol. 1(2), pages 224-254, Spring.

    More about this item


    illicit drug use; decriminalisation; price responsiveness; participation;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • I1 - Health, Education, and Welfare - - Health


    Access and download statistics


    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:adl:wpaper:1999-02. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eran Binenbaum). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.