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Smoking Bans, Cigarette Prices and Life Satisfaction

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  • Reto Odermatt
  • Alois Stutzer

Abstract

The consequences of tobacco control policies for individual welfare are difficult to assess, even more so when related consumption choices challenge people's willpower. We therefore evaluate the impact of smoking bans and cigarette prices on subjective well-being by analyzing data for 40 European countries and regions between 1990 and 2011. We exploit the staggered introduction of bans and apply an imputation strategy to study the effect of anti-smoking policies on people with different propensities to smoke. We find that higher cigarette prices reduce the life satisfaction of likely smokers. Overall, smoking bans are barely related to subjective well-being, but increase the life satisfaction of smokers who would like to quit smoking. The latter finding is consistent with cue-triggered models of addiction and the idea of bans as self-control devices.

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  • Reto Odermatt & Alois Stutzer, 2015. "Smoking Bans, Cigarette Prices and Life Satisfaction," CREMA Working Paper Series 2015-16, Center for Research in Economics, Management and the Arts (CREMA).
  • Handle: RePEc:cra:wpaper:2015-16
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    Cited by:

    1. Roxana BRISCARIU & Laura MINA-RAIU, 2020. "Organizational Behaviour: Perception And Meaning Of Smoking Habits In Everyday Routines At Workplace," APPLIED RESEARCH IN ADMINISTRATIVE SCIENCES, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 1(1), pages 33-38, August.
    2. Abel Brodeur, 2012. "Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans," Working Papers halshs-00664269, HAL.
    3. Moschion, Julie & Powdthavee, Nattavudh, 2018. "The welfare implications of addictive substances: A longitudinal study of life satisfaction of drug users," Journal of Economic Behavior & Organization, Elsevier, vol. 146(C), pages 206-221.
    4. Stutzer, Alois, 2020. "Happiness and public policy: a procedural perspective," Behavioural Public Policy, Cambridge University Press, vol. 4(2), pages 210-225, July.
    5. René Petilliot, 2018. "The (Short-Term) Individual Welfare Consequences of an Alcohol Ban," SOEPpapers on Multidisciplinary Panel Data Research 979, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Philip DeCicca & Donald Kenkel & Feng Liu & Hua Wang, 2017. "Behavioral Welfare Economics and FDA Tobacco Regulations," Advances in Health Economics and Health Services Research, in: Kristian Bolin & Björn Lindgren & Michael Grossman & Dorte Gyrd-Hansen & Tor Iversen & Robert Kaestn (ed.),Human Capital and Health Behavior, volume 25, pages 143-179, Emerald Publishing Ltd.
    7. Josten, Cecily & Lordan, Grace, 2020. "The Interaction Between Personality and Health Policy: Empirical Evidence from the UK Smoking Bans," IZA Discussion Papers 13322, Institute of Labor Economics (IZA).
    8. Bruno Frey & Alois Stutzer, 2017. "Public Choice and Happiness," CREMA Working Paper Series 2017-03, Center for Research in Economics, Management and the Arts (CREMA).
    9. Alois Stutzer & Armando N. Meier, 2016. "Limited Self‐control, Obesity, and the Loss of Happiness," Health Economics, John Wiley & Sons, Ltd., vol. 25(11), pages 1409-1424, November.
    10. Miaoqing Yang & Eugenio Zucchelli, 2015. "The impact of public smoking bans on well-being externalities: evidence from a natural experiment," Working Papers 85310008, Lancaster University Management School, Economics Department.
    11. Petilliot, René, 2018. "The (short-term) individual welfare consequences of an alcohol ban," FZG Discussion Papers 67, University of Freiburg, Research Center for Generational Contracts (FZG).
    12. Odermatt, Reto & Stutzer, Alois, 2018. "Tobacco Control Policies and Smoking Behavior in Europe: More Than Trends?," Working papers 2018/24, Faculty of Business and Economics - University of Basel.
    13. Michael Kvasnicka & Thomas Siedler & Nicolas R. Ziebarth, 2018. "The health effects of smoking bans: Evidence from German hospitalization data," Health Economics, John Wiley & Sons, Ltd., vol. 27(11), pages 1738-1753, November.
    14. Jörg Kalbfuß & Reto Odermatt & Alois Stutzer, 2018. "Medical Marijuana Laws and Mental Health in the United States," CEP Discussion Papers dp1546, Centre for Economic Performance, LSE.
    15. Nikaj, Silda & Miller, Joshua J. & Tauras, John A., 2017. "Exploring heterogeneity in the impact of smoking bans among early and late adopters," Economics Letters, Elsevier, vol. 155(C), pages 164-167.
    16. Hansoo Ko, 2020. "The effect of outdoor smoking ban: Evidence from Korea," Health Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 278-293, March.
    17. Powdthavee, Nattavudh & Stutzer, Alois, 2014. "Economic Approaches to Understanding Change in Happiness," IZA Discussion Papers 8131, Institute of Labor Economics (IZA).
    18. Pryce, Robert, 2019. "The effect of the United Kingdom smoking ban on alcohol spending: Evidence from the Living Costs and Food Survey," Health Policy, Elsevier, vol. 123(10), pages 936-940.
    19. Chadi, Cornelia, 2018. "Smoking Bans, Leisure Time, and Subjective Well-being," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181615, Verein für Socialpolitik / German Economic Association.
    20. Bruno Frey & Jana Gallus & Lasse Steiner, 2014. "Open issues in happiness research," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(2), pages 115-125, June.
    21. Meier, Armando N. & Odermatt, Reto & Stutzer, Alois, 2019. "Tobacco Sales Prohibition and Teen Smoking," IZA Discussion Papers 12231, Institute of Labor Economics (IZA).
    22. David Forrest, 2013. "An Economic And Social Review Of Gambling In Great Britain," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 7(3), pages 1-33.
    23. Raufhon Salahodjaev & Nargiza Ibragimova, 2020. "Height and Life Satisfaction: Evidence from Russia," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 15(1), pages 219-237, March.
    24. Odermatt, Reto & Stutzer, Alois, 2017. "Subjective Well-Being and Public Policy," IZA Discussion Papers 11102, Institute of Labor Economics (IZA).
    25. Ali Palali & Jan C. Ours, 2019. "The impact of tobacco control policies on smoking initiation in eleven European countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(9), pages 1287-1301, December.

    More about this item

    Keywords

    Smoking bans; cigarette prices; life satisfaction; addiction; self-control;

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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