Policies to Decrease Smoking
Tobacco products are one of the leading causes of preventable morbidity and mortality in the world. However, people addicted to smoking range in all ages from senior citizens to young teenagers.
The consensus is that increasing price of cigarettes or an increase in taxation reciprocates in a decreased consumption. Is this a fact or just a misguided assumption? Many such studies conducted to provide clear answers and economist have repeatedly tried to justify the direct relation of increase tax on cigarettes. To control and decrease its consumption local State and Central government spend a hefty amount every year.
Large variations of spending occur amongst state governments to control tobacco use and adhering tobacco control policies. Marlow (2008) validates “State governments fund tobacco control programs through a variety of general sources such as income and property taxes as well as from more specific revenue sources such as taxes on tobacco”. Local governments smoking bans policies most definitely have an economical impact as well.
Tobacco-control programs are aimed at curbing smoking prevalence Marlow (2008) proposes this possibility might mean that a state who spends more and has low smoking prevalence. Most economists agrees that , at the state level, cigarette consumption and cigarette taxes are in their determination of the state decision to pass certain types of smoking bans. (Phelps, 2012). Marlow (2015) also suggests that a ten percent increase in the price causes a four percent reduction in the quantity quantity demanded. This goes to prove that tobacco taxes reduces smoking is sparse. Callison, K, Kaestner.R (2012) proves with sophisticated empirical evidence, does not provide strong support for the hypothesis that increases in tobacco taxes reduce adult cigarette consumption.
Grossman and his colleagues (1989) find that the decision to begin smoking in youths is sensitive to price however, quantity demanded is not overly responsive. They further proved that smoking is significantly but inelastically related to prices and excise tax. This legislation provided for a tax increase on all tobacco products (except large cigars), cigarette papers, and cigarette tubes, effective April 1, 2009. Alcohol and Tobacco tax and Trade Bureau (2015) indicates that higher prices on tobacco products have historically resulted in decreased consumption and increased illicit trade. The indirect effect of increase tax increases use of substitute products such as Marijuana, alcohol and other drugs.
Political parties’ justification for higher tobacco taxes is the public health argument. While it may not be entirely appropriate to characterize smoking bans as environmental policy, concern for public health is a key motivating factor. As calculated by Center of Disease control smoking attributes to most cardiovascular disease and lung cancer including majority respiratory diseases. The