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Can Anti-Vaping Policies Curb Drinking Externalities? Evidence from E-Cigarette Taxation and Traffic Fatalities

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Listed:
  • Dhaval M. Dave
  • Yang Liang
  • Johanna Catherine Maclean
  • Joseph J. Sabia
  • Matthew Braaksma

Abstract

Teenage drinking is a major public health concern, generating social costs of over $28 billion per year, including substantial external costs associated with alcohol-related traffic fatalities. At the same time, the high rate of electronic nicotine delivery systems (ENDS) use among teenagers has been deemed “an epidemic” by the U.S. Surgeon General, with state and local policymakers turning to e-cigarette taxes as a popular policy tool to curb nicotine vaping. This study is the first to explore the spillover effects of e-cigarette taxes on teenage drinking and alcohol-related traffic fatalities. We find that a one-dollar increase in e-cigarette taxes is associated with a 1 to 2 percentage-point reduction in the probability of binge drinking among teenagers and a 5 to 10 percent reduction in traffic fatalities involving teenagers driving under the influence of alcohol. Together, these results suggest the presence of alcohol-related health benefits from e-cigarette taxation.

Suggested Citation

  • Dhaval M. Dave & Yang Liang & Johanna Catherine Maclean & Joseph J. Sabia & Matthew Braaksma, 2022. "Can Anti-Vaping Policies Curb Drinking Externalities? Evidence from E-Cigarette Taxation and Traffic Fatalities," NBER Working Papers 30670, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30670
    Note: CH EH LE PE
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    More about this item

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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