The $5 Man: The Underground Economic Response to a Large Cigarette Tax Increase in New York City

Abstract

Although interest in quitting was high, bootleggers created an environment in which reduced-price cigarettes were easier to access than cessation services. This activity continues to undermine the public health goals of the tax increase.

Cigarette Price-Minimization Strategies by U.S. Smokers

“…Other studies have documented smokers seeking less-expensive cigarettes in reaction to a price increase. 6,8,10,21,22 For example, in reaction to the 2009 federal excise tax increase, Internet searches for low-priced cigarettes increased. 22 Cigarette price-minimization strategies are practiced widely, and resulting cost reductions are quite large.…”

“…5 Strategies smokers use to minimize their cigarette costs include crossing borders to purchase cigarettes in states with lower excise taxes; purchasing lower-priced cigarettes from retailers on the Internet or on Indian reservations; purchasing cigarettes on the black market; rolling their own cigarettes; switching to a less expensive or generic brand; using price-related discounts such as coupons or multi-pack offers; and purchasing cartons instead of packs. [5][6][7][8][9][10][11][12][13][14] Using the 2009-2010 National Adult Tobacco Survey (NATS), the main purpose of the current analysis is to evaluate the prevalence of adult smokers who used one or more of five common price-minimization strategies in the previous year, and per-pack price reductions associated with use of these strategies at both the national and state level. The national prevalence also is stratified by type of strategies and by smokers' cigarette consumption level.…”

“…The national prevalence also is stratified by type of strategies and by smokers' cigarette consumption level. Although estimates of the extent of use of price-minimization strategies have been published for selected states, 8,[11][12][13]15 this is the first study, to the authors' knowledge, to provide these estimates for all states.…”

Cost‐effectiveness of increasing the reach of smoking cessation interventions in Germany: results from the EQUIPTMOD

“…However, these interventions differ in their cost‐effectiveness and may also be associated with unintended consequences. For example, tax increases may create illicit markets 11, 12, while e‐cigarettes may prevent certain smokers from quitting 13. Compared with the United Kingdom 14, smoking cessation aids are used less frequently in Germany 15, 16, while the smoking prevalence (18.0 versus 24.5%) is higher 17, 18.…”

Cigarette Price Minimization Strategies in the United States: Price Reductions and Responsiveness to Excise Taxes

“…Use of price minimization strategies, thus, mitigates the positive public health impact of cigarette price increases. Such strategies include purchasing discount or deep discount brands, utilizing price promotions such as coupons, purchasing in cartons, purchasing from low or untaxed sources, and purchasing roll-your-own cigarettes (Frieden et al, 2005;Hanewinkel & Isensee, 2007;Hanewinkel, Radden, & Rosenkranz, 2008;Hyland et al, 2005Hyland et al, , 2006Kengganpanich, Termsirikulchai, & Benjakul, 2009;Licht et al, 2011;Luk et al, 2009;Shelley, Cantrell, Moon-Howard, Ramjohn, & VanDevanter, 2007).…”