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Smoking Bans, Cigarette Prices and Life Satisfaction

  • Odermatt, Reto

    ()

    (University of Basel)

  • Stutzer, Alois

    ()

    (University of Basel)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7177.

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Length: 49 pages
Date of creation: Jan 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7177
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  1. Abel Brodeur, 2013. "Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans," CEP Discussion Papers dp1202, Centre for Economic Performance, LSE.
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  9. Bruno S. Frey & Alois Stutzer, 2010. "Recent Advances in the Economics of Individual Subjective Well-Being," Working papers 2010/04, Faculty of Business and Economics - University of Basel.
  10. Ted O'Donoghue and Matthew Rabin ., 1997. "Doing It Now or Later," Economics Working Papers 97-253, University of California at Berkeley.
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  13. O'Donoghue, Ted & Rabin, Matthew, 2006. "Optimal sin taxes," Journal of Public Economics, Elsevier, vol. 90(10-11), pages 1825-1849, November.
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  15. Kanaka D. Shetty & Thomas DeLeire & Chapin White & Jayanta Bhattacharya, 2011. "Changes in U.S. hospitalization and mortality rates following smoking bans," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 30(1), pages 6-28, December.
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  18. Alois Stutzer, 2007. "Limited Self-Control, Obesity and the Loss of Happiness," Working papers 2007/07, Faculty of Business and Economics - University of Basel.
  19. Joni Hersch, 2005. "Smoking Restrictions as a Self-Control Mechanism," Journal of Risk and Uncertainty, Springer, vol. 31(1), pages 5-21, July.
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  24. Christine Benesch & Bruno S. Frey & Alois Stutzer, 2006. "TV Channels, Self Control and Happiness," IEW - Working Papers 301, Institute for Empirical Research in Economics - University of Zurich.
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  30. Gary S. Becker & Kevin M. Murphy, 1986. "A Theory of Rational Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State 41, Chicago - Center for Study of Economy and State.
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  34. Adams, Scott & Cotti, Chad, 2008. "Drunk driving after the passage of smoking bans in bars," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1288-1305, June.
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  38. Alois Stutzer, 2009. "Happiness when Temptation Overwhelms Willpower," Chapters, in: Happiness, Economics and Politics, chapter 5 Edward Elgar.
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