IDEAS home Printed from https://ideas.repec.org/p/pid/rrepot/20213.html

Switch, Reduce, OR Quit: How Do Smokers Respond to Tobacco Tax Increases in Pakistan?

Author

Listed:
  • Durr-e-Nayab

    (Pakistan Institute of Development Economics)

  • Muhammad Nasir

    (Pakistan Institute of Development Economics)

  • Junaid Alam Memon

    (Pakistan Institute of Development Economics)

  • Omer Siddique

    (Pakistan Institute of Development Economics)

Abstract

Smoking is the leading cause of preventable deaths globally. Consequently, various programs and interventionist policies have been suggested and implemented to curb tobacco use and reduce cigarette consumption. Among these, tobacco taxation is the most effective. Evidence suggests that significant increases in cigarette taxes are effective in reducing smoking initiation by non-smokers and cigarette consumption of smokers – either by reducing the number of cigarettes, they smoke or quitting completely (Hanewinkel & Lsensee, 2007).

Suggested Citation

  • Durr-e-Nayab & Muhammad Nasir & Junaid Alam Memon & Omer Siddique, 2021. "Switch, Reduce, OR Quit: How Do Smokers Respond to Tobacco Tax Increases in Pakistan?," PIDE Research Report 2021:3, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:rrepot:2021:3
    as

    Download full text from publisher

    File URL: https://file.pide.org.pk/pdfpideresearch/rr-042-switch-reduce-or-quit-how-do-smokers-respond-to-tobacco-tax-increases-in-pakistan.pdf
    File Function: First Version, 2021
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. William N. Evans & Matthew C. Farrelly, 1998. "The Compensating Behavior of Smokers: Taxes, Tar, and Nicotine," RAND Journal of Economics, The RAND Corporation, vol. 29(3), pages 578-595, Autumn.
    2. Justin S. White & Hana Ross, 2015. "Smokers' Strategic Responses to Sin Taxes: Evidence from Panel Data in Thailand," Health Economics, John Wiley & Sons, Ltd., vol. 24(2), pages 127-141, February.
    3. Chiang-Ming Chen & Kuo-Liang Chang & Lin Lin & Jwo-Leun Lee, 2014. "Brand switching or reduced consumption? A study of how cigarette taxes affect tobacco consumption," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(9), pages 991-998, December.
    4. Knut Wangen & Erik Biørn, 2006. "How do consumers switch between close substitutes when price variation is small? The case of cigarette types," Spanish Economic Review, Springer;Spanish Economic Association, vol. 8(4), pages 239-253, December.
    5. Serhan Cevik, 2018. "Smoke screen: Estimating the tax pass‐through to cigarette prices in Pakistan," Review of Development Economics, Wiley Blackwell, vol. 22(3), pages 1-15, August.
    6. Biener, L. & Aseltine Jr., R.H. & Cohen, B. & Anderka, M., 1998. "Reactions of adult and teenaged smokers to the Massachusetts tobacco tax," American Journal of Public Health, American Public Health Association, vol. 88(9), pages 1389-1391.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Crespi, Francesco & Liberati, Paolo & Paradiso, Massimo & Scialà, Antonio & Tedeschi, Simone, 2021. "Smokers are different: The impact of price increases on smoking reduction and downtrading," Economic Modelling, Elsevier, vol. 97(C), pages 326-334.
    2. Yi‐Wen Tsai & Chung‐Lin Yang & Chin‐Shyan Chen & Tsai‐Ching Liu & Pei‐Fen Chen, 2005. "The effect of Taiwan's tax‐induced increases in cigarette prices on brand‐switching and the consumption of cigarettes," Health Economics, John Wiley & Sons, Ltd., vol. 14(6), pages 627-641, June.
    3. Chiang-Ming Chen & Kuo-Liang Chang & Lin Lin & Jwo-Leun Lee, 2014. "Brand switching or reduced consumption? A study of how cigarette taxes affect tobacco consumption," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(9), pages 991-998, December.
    4. Justin S. White & Hana Ross, 2015. "Smokers' Strategic Responses to Sin Taxes: Evidence from Panel Data in Thailand," Health Economics, John Wiley & Sons, Ltd., vol. 24(2), pages 127-141, February.
    5. Aisha Baisalova, 2022. "Exploring Border Effects: Sensitivity of Cigarette Consumption to Excise Tax," CERGE-EI Working Papers wp726, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    6. Fletcher, Jason M. & Frisvold, David E. & Tefft, Nathan, 2010. "The effects of soft drink taxes on child and adolescent consumption and weight outcomes," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 967-974, December.
    7. Shamima Akter & Md. Mizanur Rahman & Thomas Rouyard & Sarmin Aktar & Raïssa Shiyghan Nsashiyi & Ryota Nakamura, 2024. "A systematic review and network meta-analysis of population-level interventions to tackle smoking behaviour," Nature Human Behaviour, Nature, vol. 8(12), pages 2367-2391, December.
    8. Kajal Lahiri & Xian Li, 2020. "Smoking Behavior of Older Adults: A Panel Data Analysis Using HRS," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 18(3), pages 495-523, September.
    9. Gabriel A. Picone & Frank Sloan & Justin G. Trogdon, 2004. "The effect of the tobacco settlement and smoking bans on alcohol consumption," Health Economics, John Wiley & Sons, Ltd., vol. 13(10), pages 1063-1080, October.
    10. Cotti, Chad & Courtemanche, Charles & Maclean, Joanna Catherine & Nesson, Erik & Pesko, Michael F. & Tefft, Nathan W., 2022. "The effects of e-cigarette taxes on e-cigarette prices and tobacco product sales: Evidence from retail panel data," Journal of Health Economics, Elsevier, vol. 86(C).
    11. Rehman Faiz Ur & Nasir Muhammad, 2020. "In the Same Boat, but not Equals: The Heterogeneous Effects of Indirect Taxation on Child Health in Punjab-Pakistan," Asian Journal of Law and Economics, De Gruyter, vol. 11(3), pages 1-26, December.
    12. Kevin Callison & Robert Kaestner, 2014. "Do Higher Tobacco Taxes Reduce Adult Smoking? New Evidence Of The Effect Of Recent Cigarette Tax Increases On Adult Smoking," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 155-172, January.
    13. Terje Skjerpen & Marianne Tønnessen, 2025. "Try another municipality or leave the country? A disaggregated approach to determinants of internal migration and emigration for immigrants and natives in Norway," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 74(2), pages 1-29, June.
    14. Evans, William N. & Ringel, Jeanne S., 1999. "Can higher cigarette taxes improve birth outcomes?," Journal of Public Economics, Elsevier, vol. 72(1), pages 135-154, April.
    15. DeCicca, Philip & McLeod, Logan, 2008. "Cigarette taxes and older adult smoking: Evidence from recent large tax increases," Journal of Health Economics, Elsevier, vol. 27(4), pages 918-929, July.
    16. Tao Chen & Baohong Sun & Vishal Singh, 2009. "An Empirical Investigation of the Dynamic Effect of Marlboro's Permanent Pricing Shift," Marketing Science, INFORMS, vol. 28(4), pages 740-758, 07-08.
    17. Marysia Ogrodnik, 2015. "An Economic Model of Stages of Addictive Consumption," Documents de travail du Centre d'Economie de la Sorbonne 15075, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    18. Richard Cebula & Maggie Foley & Robert Houmes, 2014. "Empirical analysis of the impact of cigarette excise taxes on cigarette consumption: estimates from recent state-level data," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 38(1), pages 164-180, January.
    19. Marysia Ogrodnik, 2015. "An Economic Model of the Stages of Addictive Consumption," Post-Print halshs-01224553, HAL.
    20. repec:ejw:journl:v:5:y:2008:i:2:p:240-268 is not listed on IDEAS
    21. Irvine Ian J & Nguyen Hai V, 2011. "Toxic Choices: The Theory and Impact of Smoking Bans," Forum for Health Economics & Policy, De Gruyter, vol. 14(1), pages 1-36, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pid:rrepot:2021:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Khurram Iqbal (email available below). General contact details of provider: https://edirc.repec.org/data/pideipk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.