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Smoking Bans, Cigarette Prices and Life Satisfaction

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  • Odermatt, Reto

    () (University of Basel)

  • Stutzer, Alois

    () (University of Basel)

Abstract

The consequences of tobacco control policies for individual welfare are difficult to assess. 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 not related to subjective well-being, but increase the life satisfaction of smokers who recently failed to quit smoking. The latter finding is consistent with cue-triggered models of addiction and the idea of bans as self-control devices.

Suggested Citation

  • Odermatt, Reto & Stutzer, Alois, 2013. "Smoking Bans, Cigarette Prices and Life Satisfaction," IZA Discussion Papers 7177, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7177
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    Cited by:

    1. Abel Brodeur, 2012. "Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans," PSE Working Papers halshs-00664269, HAL.
    2. repec:eee:jeborg:v:146:y:2018:i:c:p:206-221 is not listed on IDEAS
    3. repec:eme:aheszz:s0731-219920170000025005 is not listed on IDEAS
    4. 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: Human Capital and Health Behavior, volume 25, pages 143-179 Emerald Publishing Ltd.
    5. 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).
    6. 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.
    7. 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.
    8. 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.
    9. repec:eee:ecolet:v:155:y:2017:i:c:p:164-167 is not listed on IDEAS
    10. Powdthavee, Nattavudh & Stutzer, Alois, 2014. "Economic Approaches to Understanding Change in Happiness," IZA Discussion Papers 8131, Institute for the Study of Labor (IZA).
    11. 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.
    12. 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.
    13. Odermatt, Reto & Stutzer, Alois, 2017. "Subjective Well-Being and Public Policy," IZA Discussion Papers 11102, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    tobacco control policies; smoking bans; cigarette prices; life satisfaction; addiction; self-control;

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law

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