Did recent tobacco reforms change the cigarette market?

Davidson, S and De Silva, A 2018, 'Did recent tobacco reforms change the cigarette market?', Economic Papers, vol. 37, no. 1, pp. 55-74.


Document type: Journal Article
Collection: Journal Articles

Title Did recent tobacco reforms change the cigarette market?
Author(s) Davidson, S
De Silva, A
Year 2018
Journal name Economic Papers
Volume number 37
Issue number 1
Start page 55
End page 74
Total pages 20
Publisher Wiley-Blackwell Publishing Asia
Abstract The Australian tobacco market is very tightly regulated. Australian governments, like many others, have a long history of enacting various forms of control, including restricting advertising and imposing taxes. Using Australian government data, we investigate the effects of controls on cigarette market characteristics coinciding with Australia's introduction of plain packaging in 2012 (arguably the most innovative form of tobacco control in many years) as well as a subsequent tax increase. Using these data, we find no evidence to suggest that prices and market shares, key market characteristics, changed as a result of plain packaging. Moreover, using a second data set, we find that the introduction of plain packaging had no discernible effect on smoking rates. This finding is not surprising as both domestic and international research shows that government attempts to discourage new consumers, and encourage current consumers to quit, have not been very successful.
Subject Industry Economics and Industrial Organisation
Keyword(s) excise tax
market share
plain packaging
prices
smoking rates
Tobacco Control
DOI - identifier 10.1111/1759-3441.12198
Copyright notice © 2017 The Economic Society of Australia
ISSN 0812-0439
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