Tobacco taxes and government revenue in South Africa

Abedian, Iraj; Jacobs, Rowena

doi:10.1108/eum0000000006275

Cited by 7 publications

(6 citation statements)

References 20 publications

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“…In recent years, the booming economy has boosted disposable income, while health awareness appears to have hit a plateau – offsetting the negative effect of real price increases. Therefore, a narrow policy aimed at repeatedly exploiting the price elasticity of smokers may be misguided if it ignores other factors that also contribute to the evolution of cigarette consumption (see pro‐excise tax arguments by Abedian and Jacobs (2001)). It is mistaken to argue that a 10% increase in cigarette prices today will reduce consumption by an amount similar to the reduction achieved by a hypothetical 10% increase in the 1990s, as preferences and economic conditions are quite different.…”

Section: Discussionmentioning

confidence: 99%

“…Chaloupka et al. (2000) and Abedian and Jacobs (2001) provide summaries of current international research on the demand for tobacco, distinguishing between estimates for developed and developing economies. These authors find that estimates of the price elasticity of tobacco demand in developing countries are generally higher than those in developed nations (Chaloupka et al.…”

Section: Previous Research On Price Elasticitymentioning

confidence: 99%

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Cigarette Demand in South Africa Over 1996‐2006: The Role of Price, Income and Health Awareness

Boshoff

2008

South African J Economics

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The study seeks to re-investigate the role of price, income and health awareness in the evolution of South African cigarette demand over the period 1996 to 2006. At first glance, rising cigarette prices appear to have played an important role in reducing cigarette consumption over the sample period, especially during the late 90s. But how dependent is the impact of price increases on general economic conditions and overall health awareness among smokers? Health awareness, in particular, has not received sufficient attention in the South African context, due to a lack of data. Previous estimates of price and income elasticities of cigarette demand are based on long annual time series data, which do not allow for changes in underlying tastes and preferences. The paper attempts to disentangle the forces of price, income, health awareness and policy intervention using a quarterly data set. In addition, the study also cautions against the upward bias in estimates derived from formal cigarette sales data - in the light of increasing illicit cigarette volumes in South Africa. Copyright (c) 2008 The Author. Journal compilation (c) Economic Society of South Africa 2008.

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Section: Discussionmentioning

confidence: 99%

Section: Previous Research On Price Elasticitymentioning

confidence: 99%

Cigarette Demand in South Africa Over 1996‐2006: The Role of Price, Income and Health Awareness

Boshoff

2008

South African J Economics

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“…On governance resource type, after the analysis of the results, it was shown that out of the 17 studies included in the quality synthesis about 64.70% (N=11) policies reported were based on regulation, 10 , 32 , 33 , 50–55 29.41% (N=5) dwelt on the economic nature 29 , 30 , 56–59 and lastly 1 report was based on Informative side and constituted 5.88% (N=1) percentage 56 (see Table 2 and Figure 2 ). The results in Table 3 show a general overview of the main characteristics of the 17 studies that were included in the quality synthesis.…”

Section: Resultsmentioning

confidence: 99%

“…22,25 These studies have tackled almost all tobacco control policies. However, the majority of them tended to concentrate on economic policies like taxation [29][30][31] and regulatory-like smoke-free environment. [32][33][34] The vast majority of literature indicates that the application of such policies and research findings has been facing some difficulties in many setups due to the social economic benefits that are inherently attached to the tobacco industry and the involvement of politicians in the industry who are also in policymakers.…”

Section: Introductionmentioning

confidence: 99%

Assessment of Tobacco Control Policy Instruments, Status and Effectiveness in Africa: A Systematic Literature Review

Munthali

Xuelian

Rizwan

et al. 2021

RMHP

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Introduction:The tobacco industry has for decades been associated with environmental damage, health-related diseases, human rights violations and corruption issues. The World Health Organisation formulated the Framework Convention on Tobacco Control with the aim of controlling tobacco production and consumption. Most of the countries on the continent of Africa were also the target of the framework given the high importation and use of tobacco products. The main aim of this study was to find out the current status of tobacco control policies and their effectiveness in Africa. Material and Methods: This study was a systematic literature review that was conducted between the months of August and November 2020 by extracting data from the databases of PubMed, Elsevier Scopus and Web of Science. Only English articles were culled from the retrieved papers. Out of the 910 papers retrieved, only 17 papers from African countries were selected on the quality synthesis after meeting the inclusion criteria. Results:The results of the study showed that three governance resources were identified of regulatory (64.70%, N=11) which had smoke-free environment, advertisement bans, and cessation programs, economics (29.41%, N=5) which were taxation measures and informative (5.886%, N=1) which were mass media campaigns. Furthermore, Western African countries especially South Africa reported many pronouncements on smoke-free environment and taxation measures. Mass media campaigns proved to be more effective policies as compared to others. Conclusion:This study recommends that the future research should be done on the effectiveness of mixed policy instruments as compared to single application. Furthermore, the researcher recommends the use of more informative policies in dealing with inelastic behaviours like those related to tobacco due to the addictive nature.

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“…The 1999 Tobacco Products Control Act (TPCA) amended the 1993 TPCA by prohibiting the advertisement and promotion of tobacco products, the free distribution of tobacco products and the receipt of gift or cash prices in contests, lotteries or games to the buyer of tobacco products. The existence of these policies sparked research on the economics of tobacco in South Africa, with particular focus on price sensitivity (Van Walbeek, ; Abedian and Jacobs, ).…”

Section: The Institutional Contextmentioning

confidence: 99%

Peer Networks and Tobacco Consumption in South Africa

Mukong

2017

South African J Economics

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This paper deepens the empirical analysis of peer networks by considering their effects on both smoking participation and smoking intensity in South Africa, a country where majority initiate smoking at adolescent age. Peer networks are key in determining the smoking behaviour of youths, but the magnitude of the effects is still debated, questioned and inconclusive. I used a control function approach, a two‐stage least square and the fixed effect method to address the potential endogeneity of peer network. The results suggest positive and significant peer effects on smoking participation and smoking intensity. While the network effects are consistently positive and significant, the magnitude of the estimates varies across methodological approaches with the instrument variable estimates generally lower. Including older adults in the peer reference group increases the peer effect estimates. Finally, using clusters as an alternative measure of network size in wave one, I show that peer effects are independent on network size but rather on network quality. Relative to the results of this paper, previous literature has documented larger peer effects on the decision to smoke. The findings suggest that policies (excise tax) that directly affect the decision to smoke and the smoking intensity of the peer reference group are likely to affect own smoking behaviour.

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Tobacco taxes and government revenue in South Africa

Cited by 7 publications

References 20 publications

Cigarette Demand in South Africa Over 1996‐2006: The Role of Price, Income and Health Awareness

Cigarette Demand in South Africa Over 1996‐2006: The Role of Price, Income and Health Awareness

Assessment of Tobacco Control Policy Instruments, Status and Effectiveness in Africa: A Systematic Literature Review

Peer Networks and Tobacco Consumption in South Africa

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