The Effects of Traditional Cigarette and E-Cigarette Taxes on Adult Tobacco Product Use

Abstract

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E-cigarettes and adult smoking: Evidence from Minnesota

“…The study adds two more years to the data used by Cotti, Nesson, and Teft (2018). Unlike Cotti, Nesson, and Teft (2018), Pesko et al (2019) find that higher cigarette taxes increase adult e-cig use but find no effects of their-cig tax measure. 2019exclude Minnesota from most of their analysis because it enacted an e-cigarette tax prior to the beginning of their sample year.…”

“…These different approaches to state e-cig taxation policy have resulted in a trivial effect on price in some states and a large effect on price in other states. Pesko et al (2019) use data from the Behavioral Risk Factor Surveillance System and the National Health Interview Surveys between 2011 and 2017 in conjunction with a difference-in-differences model. This sample period excludes Minnesota, which had the largest e-cig tax, from the within-state identifying variation because the state had a tax on e-cig in place for the entire sample period.…”

“…They find that e-cig taxes increase prepregnancy and prenatal smoking, implying that e-cigs and traditional cigarettes are substitutes among pregnant women. The e-cigarette tax measures are more refined than those in the one byPesko et al (2019) Abouk et al (2019). do not, however, capitalize on the potential evidence contained in the quasi-natural experiment contained in the Minnesota experience and focus on a small segment of the population.…”

The Effects of E-Cigarette Taxes on E-Cigarette Prices and Tobacco Product Sales: Evidence from Retail Panel Data

“…One working paper provides some evidence that the e-cigarette tax increase in Minnesota in 2013 reduces e-cigarette use and increases traditional cigarette use among adolescents (Pesko and Warman 2019). Two other papers show that higher e-cigarette tax rates reduce e-cigarette use and increase traditional cigarette use (i.e., economic substitution) for adults (Pesko, Courtemanche, and Maclean 2020) and pregnant women (Abouk et al 2020), and symmetrical effects with traditional cigarette taxes. The latter two papers use the standardized e-cigarette tax method developed in this paper, and none use as long a time period for e-cigarette outcomes or as much policy variation as we use in our work.…”

The Effect of E-Cigarette Taxes on Pre-pregnancy and Prenatal Smoking

“…Instrumenting prices with taxes, they also calculate an ecigarette own-price elasticity of -1.5 and a cross-price elasticity of 0.9. Pesko, Courtemanche, and Maclean (2019) combine survey data from the Behavioral Risk Factor Surveillance Survey (BRFSS) and the National Health Interview Survey (NHIS) over the period 2011 to 2018 to study the effects of e-cigarette and traditional cigarette taxes on vaping and smoking. The authors find that a $1.00 increase in the e-cigarette tax rate increases daily smoking propensity by 5.3% and the probability of 'dual use' (i.e., consuming both e-cigarettes and traditional cigarettes) by 24.4%.…”