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The Effect of Taxes and Bans on Passive Smoking

Author

Listed:
  • Jérôme Adda
  • Francesca Cornaglia
Abstract
This paper evaluates the effect of excise taxes and bans on smoking in public places on the exposure to tobacco smoke of non-smokers. We use a novel way of quantifying passive smoking: we use data on cotinine concentration- a metabolite of nicotine- measured in a large population of non-smokers over time. Exploiting state and time variation across US states, we reach two important conclusions. First, excise taxes have a significant effect on passive smoking. Second, smoking bans have on average no effects on non smokers. While bans in public transportation or in schools decrease the exposure of non smokers, bans in recreational public places can in fact perversely increase their exposure by displacing smokers to private places where they contaminate non smokers, and in particular young children. Bans affect socioeconomic groups differently: we find that smoking bans increase the exposure of poorer individuals, while it decreases the exposure of richer individuals, leading to widening health disparities.

Suggested Citation

  • Jérôme Adda & Francesca Cornaglia, 2006. "The Effect of Taxes and Bans on Passive Smoking," CEPR Discussion Papers 509, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    • Handle: RePEc:auu:dpaper:509
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    File URL: https://www.cbe.anu.edu.au/researchpapers/CEPR/DP509.pdf
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    References listed on IDEAS

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    8. Jérôme Adda & Francesca Cornaglia, 2006. "Taxes, Cigarette Consumption, and Smoking Intensity," American Economic Review, American Economic Association, vol. 96(4), pages 1013-1028, September.
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    Cited by:

    1. Kanaka D. Shetty & Thomas DeLeire & Chapin White & Jayanta Bhattacharya, 2011. "Changes in U.S. hospitalization and mortality rates following smoking bans," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 30(1), pages 6-28, December.
    2. Abel Brodeur, 2012. "Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans," Working Papers halshs-00664269, HAL.
    3. Paul Frijters & Michael A. Shields & Stephen Wheatley Price & Jenny Williams, 2011. "Quantifying the cost of passive smoking on child health: evidence from children's cotinine samples," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 174(1), pages 195-212, January.
    4. Origo Federica & Lucifora Claudio, 2013. "The Effect of Comprehensive Smoking Bans in European Workplaces," Forum for Health Economics & Policy, De Gruyter, vol. 16(1), pages 55-81, March.
    5. Michael L. Marlow, 2012. "Effectiveness of Massachusetts’ comprehensive tobacco control program," Applied Economics, Taylor & Francis Journals, vol. 44(3), pages 373-385, January.
    6. Marianne P. Bitler & Christopher S. Carpenter & Madeline Zavodny, 2010. "Effects of venue‐specific state clean indoor air laws on smoking‐related outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 19(12), pages 1425-1440, December.
    7. Michael Kvasnicka & Harald Tauchmann, 2012. "Much ado about nothing? Smoking bans and Germany's hospitality industry," Applied Economics, Taylor & Francis Journals, vol. 44(35), pages 4539-4551, December.
    8. Jérôme Adda & Francesca Cornaglia, 2006. "Taxes, Cigarette Consumption, and Smoking Intensity," American Economic Review, American Economic Association, vol. 96(4), pages 1013-1028, September.
    9. Jason Abrevaya & Laura Puzzello, 2012. "Taxes, Cigarette Consumption, and Smoking Intensity: Comment," American Economic Review, American Economic Association, vol. 102(4), pages 1751-1763, June.
    10. Michael Kvasnicka & Harald Tauchmann, 2010. "Much Ado About Nothing? – Smoking Bans and Germany’s Hospitality Industry," Ruhr Economic Papers 0172, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    11. Sijbren Cnossen, 2006. "Alcohol taxation and regulation in the European Union," CPB Discussion Paper 76.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    12. Stephen Smith, 2008. "Restraining the Golden Weed: Taxation and Regulation of Tobacco," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 64(4), pages 476-507, December.
    13. Sijbren Cnossen & D. Forrest & S. Smith, 2009. "Taxation and regulation of smoking, drinking and gambling in the European Union," CPB Special Publication 76, CPB Netherlands Bureau for Economic Policy Analysis.
    14. Sijbren Cnossen & D. Forrest & S. Smith, 2009. "Taxation and regulation of smoking, drinking and gambling in the European Union," CPB Special Publication 76.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    15. repec:zbw:rwirep:0172 is not listed on IDEAS

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    More about this item

    Keywords

    Passive smoking; Taxes; Bans;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • H - Public Economics

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