Vape Taxes a Great Way to Encourage Smoking, Researchers Show

Date:

A new paper published in the Journal of Health Economics suggests that burdensome taxes on vaping products lead to an increase in cigarette sales.

The co-authors of the peer-reviewed article—including Michael Pesko, a leading tobacco economist in the United States—used the NielsenIQ Retail Scanner Dataset (NRSD) over the years 2013 to 2019, which tracks weekly sales of many national retailers and a large percentage of total sales among drug stores, food stores, dollar stores, club stores and mass merchandisers.

They found that e-cigarette taxes almost fully pass through to consumer retail prices—meaning, in short, that vapers typically have to pay most of the tax. The authors estimate, more specifically, that a $1 increase in e-cigarette taxes increases e-cigarette prices by 90 cents. Policymakers, therefore, heavily influence the retail price of e-cigarettes through tax legislation.

“Our study finds that for every one Juul-sized e-cigarette eliminated as a result of an e-cigarette tax, 1.9 packs [of cigarettes] are purchased instead.”

Read full article here.

Alex Norcia – Filter – 2022-09-26.

Want More Investigative Content?

Curate RegWatch
Curate RegWatchhttps://regulatorwatch.com
In addition to our original coverage, RegWatch curates top stories on issues and impacts arising from the regulation of economic, social and environmental activity in Canada and the U.S.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

MORE VAPING

Comments Now Open Again on Our Website!

Hi folks, after a short lockdown of our website, we've now re-opened viewer comments on our posts. Your input on the stories we post...

Vaping Coverage Get it NOW!

Sign Up for Incisive Content!

RegWatch original video is designed to move opinion. Get our videos first and be the first to share.

Your Information will never be shared with any third party