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Estimating the Effect of E-cigarette Nicotine Limits on Cigarette and E-cigarette Sales in Canada

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Abstract

Governments worldwide have recently considered and adopted policies limiting nicotine content in tobacco products, yet little is known about these policies’ impacts on tobacco product consumption. This paper estimates the effect of Canada’s limits on nicotine in e-cigarettes using a difference-in-differences design. We find evidence of a 37% decrease in sales of e-cigarette products in gas and convenience stores. However, we also estimate an 18% increase in Google Searches for e-cigarettes and a 34% increase in Google Searches containing the phrase “Vape Shop†, suggesting substitution to online outlets, vape shops, and potentially illicit markets. We find no evidence of an effect on cigarette sales and can rule out effects larger than a 3% increase with 95% confidence.

Suggested Citation

  • Brad A. Davis & Abigail S. Friedman & Michael F. Pesko, 2025. "Estimating the Effect of E-cigarette Nicotine Limits on Cigarette and E-cigarette Sales in Canada," Working Papers 2514, Department of Economics, University of Missouri.
    • Handle: RePEc:umc:wpaper:2514
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    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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