2012
DOI: 10.1111/j.1759-3441.2012.00186.x
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Will Plain Packaging Reduce Cigarette Consumption?*

Abstract: The Australian Parliament has passed legislation compelling tobacco products to be sold in “plain packaging.” This article reviews this legislation and its likely effects on prices, market structure in the tobacco industry and on smoking behaviour. Industry changes following two previous sets of restrictions on advertising are examined for relevant empirical evidence. Without offsetting tax increases, the legislation will plausibly reduce prices but significant entry into the industry and greater consumption o… Show more

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Cited by 15 publications
(10 citation statements)
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“…Recently, as the first jurisdiction worldwide, plain packaging was introduced in Australia [25]. Results from experimental studies in several countries indicate that introducing plain packs can have large implications for how young people view cigarette brands.…”
Section: Introductionmentioning
confidence: 99%
“…Recently, as the first jurisdiction worldwide, plain packaging was introduced in Australia [25]. Results from experimental studies in several countries indicate that introducing plain packs can have large implications for how young people view cigarette brands.…”
Section: Introductionmentioning
confidence: 99%
“…Similarly, if reducing the appeal of tobacco products to consumers was achieved, prices would likely be lower and more concentrated, 4 reflecting a reduction in own and cross-price elasticities. Alone, lower prices would lead to increases in consumption; however, this increase in demand is assumed to be offset by emphasising the unappealing (Clarke & Prentice, 2012) aspects of tobacco consumption.…”
Section: Plain Packaging -An Innovative Policy Approach?mentioning
confidence: 99%
“…More recently, academic attention has turned to the effectiveness of plain packaging. Only two papers have examined plain packaging from an economic perspective; Clarke and Prentice (2012) and Davidson and de Silva (2014). Clarke and Prentice (2012) focussed on the underlying theoretical economic rationale and likely effects of the legislation as well as empirically assessed the previous restrictions on advertising, Davidson and de Silva (2014) employed a different approach empirically assessing tobacco expenditure data of expenditure data.…”
Section: Previous Economic Studies -A Short Reviewmentioning
confidence: 99%
“…The second implication of the plain packaging policy, ceteris paribus, is that the market share of illegal tobacco will increase (Farrell and Fry 2013). Clarke and Prentice (2012) provide an analysis of both these claims and suggest that, at best, they are overstated. But what is important for our purposes is that Clarke and Prentice (2012) agree that a plain packaging policy could cause prices to fall and consumption to rise, and they recommend that increases in excise tax be employed to prevent tobacco prices from falling.…”
Section: Theoretical Predictionsmentioning
confidence: 99%
“…Clarke and Prentice (2012) provide an analysis of both these claims and suggest that, at best, they are overstated. But what is important for our purposes is that Clarke and Prentice (2012) agree that a plain packaging policy could cause prices to fall and consumption to rise, and they recommend that increases in excise tax be employed to prevent tobacco prices from falling. By contrast, Farrell and Fry (2013) suggest that plain packaging would blur the distinction between legal and illegal tobacco and result in a greater demand for illegal tobacco.…”
Section: Theoretical Predictionsmentioning
confidence: 99%