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Smoke-free ordinances increase restaurant profit and value

  • Alamar, B C
  • Glantz, Stanton A. Ph.D.
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    This study estimates the value added to a restaurant by a smoke-free policy using regression analysis of the purchase price of restaurants as a function of the presence of a smoke-free law and other control variables. There was a median increase of 16% (interquartile range 11% to 25%) in the sale price of a restaurant in a jurisdiction with a smoke-free law compared to a comparable restaurant in a community without such a law. This result indicates that contrary to claims made by opponents of smoke-free laws, these laws are associated with an increase in restaurant profitability.

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    File URL: http://www.escholarship.org/uc/item/91w950j4.pdf;origin=repeccitec
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    Paper provided by Center for Tobacco Control Research and Education, UC San Francisco in its series University of California at San Francisco, Center for Tobacco Control Research and Education with number qt91w950j4.

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    Date of creation: 01 Oct 2004
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    Handle: RePEc:cdl:ctcres:qt91w950j4
    Contact details of provider: Web page: http://www.escholarship.org/repec/ctcre/

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    1. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
    2. J. Dunham & ML. Marlow, 2000. "Smoking laws and their differential effects on restaurants, bars, and taverns," Contemporary Economic Policy, Western Economic Association International, vol. 18(3), pages 326-333, 07.
    3. Weber, M D & Bagwell, DAS & Fielding, J E & Glantz, Stanton A. Ph.D., 2003. "Long term compliance with California's Smoke-Free Workplace law among bars and restaurants in Los Angeles County," University of California at San Francisco, Center for Tobacco Control Research and Education qt82m3j641, Center for Tobacco Control Research and Education, UC San Francisco.
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