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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

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    References listed on IDEAS

    as
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    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
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