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E-Cigarettes: The Extent and Impact of Complementary Dual-Use

Author

Listed:
  • Doyle, Chris

    (Warwick Policy Lab and Department of Economics University of Warwick)

  • Ronayne, David

    (Warwick Policy Lab and Department of Economics University of Warwick)

  • Sgroi, Daniel

    (Warwick Policy Lab and Department of Economics University of Warwick,)

Abstract

The highly controversial e-cigarette industry has generated considerable policy debate and mixed regulatory responses worldwide. Surprisingly, an issue that has been largely ignored is the categorisation of e-cigarettes as substitutes or (dynamic) complements for conventional smoking. We conduct an online survey of US participants finding that 37% of e-cigarette users view them primarily as complementary. We use this result along-side publicly available data to calibrate a cost-benefit analysis, estimating that complementarity reduces the potential cost-savings of e-cigarettes by as much as 57% (or $3.3-4.9bn p.a.) relative to case with zero complementarity.

Suggested Citation

  • Doyle, Chris & Ronayne, David & Sgroi, Daniel, 2015. "E-Cigarettes: The Extent and Impact of Complementary Dual-Use," The Warwick Economics Research Paper Series (TWERPS) 1064, University of Warwick, Department of Economics.
  • Handle: RePEc:wrk:warwec:1064
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2015/twerp_1064_doyle.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    e-cigarettes ; smoking ; dual-use ; dynamic complements ; cost-benefit analysis;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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