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Instituto Nacional de Salud Pública

2006, Number S1

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salud publica mex 2006; 48 (S1)

Economic policies for tobacco control in developing countries

Ross H, Chaloupka FJ

Language: English
References: 96
Page: 113-120
PDF size: 100.15 Kb.


ABSTRACT

Raising tobacco taxes can have an income distributional impact on the population. Since lower socio-economic groups usually smoke more, they also contribute more to total cigarette tax collection. Thus, those who can afford it least contribute the most in terms of tobacco taxes. This means that tobacco taxes are regressive. However, tobacco tax increases are likely to be progressive, decreasing the relative tax incidence on the poor, vis-à-vis the rich. This is based on the premise that the poor are likely to be more sensitive to price changes, and would thus reduce their cigarette consumption by a greater percentage than the rich in response to an excise tax-induced increase in cigarette prices. Recent empirical studies confirm this hypothesis by demonstrating that the price responsiveness of cigarette demand increases with income. Research in China confirmed that reducing cigarette expenditures could release household resources for spending on food, housing, and other goods that improve living standards. Therefore, in the long run, tobacco control measures will reduce social inequality.


REFERENCES

  1. United Nations Economic and Social Council Ad hoc Inter-Agency Task Force on Tobacco Control Report of the Secretary-General. New York: UN, 2004.

  2. Jha P, Chaloupka FJ. Curbing the epidemic: governments and the economics of tobacco control. Washington DC: World Bank, 1999.

  3. Jha P, Musgrove P, Chaloupka FJ, Yurekli A. The economic rationale for intervention in the tobacco market. In: Jha P, Chaloupka FJ, eds. Tobacco control in developing countries. Oxford: Oxford University Press, 2000:153-174.

  4. Warner KE, Chaloupka FJ, Cook PJ, Manning WG, Newhouse JP, Novotny TE, et al. Criteria for determining an optimal cigarette tax: the economist’s perspective. Tob Control 1995; 4: 380-386.

  5. Fong GT, Hammond D, Laux FL, Zanna MP, Cummings KM, Borland R, et al. The near-universal experience of regret among smokers in four countries: Findings from the International Tobacco Control Policy Evaluation Survey. Nicotine Tob Res 2004;6 suppl 3:S341-S351.

  6. Martin JP, Peruga A. The global youth tobacco survey: Results in the Americas. Epidemiological Bulletin. PAHO 2002; 23(2).

  7. Valdes-Salgado R, Hernandez-Avila M, Amor JS. Tobacco consumption in the Americas: Elements for an anti-smoking program. Salud Publica Mex 2002;44 Suppl 1:S125-135.

  8. Bobak M, Jha P, Nguyen S, Jarvis M. Poverty and smoking. In: Jha P, Chaloupka FJ, ed. Tobacco control in developing countries. Oxford: Oxford University Press, 2000: Ch3.

  9. Karki YB, Pant KD, Pande BR. The economics of tobacco in Nepal. HNP Discussion Paper. Economics of Tobacco Control Paper No 13. Washington DC: World Bank, 2003.

  10. Nyo Nyo K, Zaw KK, Naing KK. The economics of tobacco control in Myanmar. HNP Discussion Paper. Economics of Tobacco Control Paper No.14. Washington DC: World Bank, 2003.

  11. Sesma-Vazquez S, Campuzano-Rincon JC, Carreon-Rodriguez VG, Knaul F, Lopez-Antunano FJ, Hernandez-Avila M. El comportamiento de la demanda de tabaco en México: 1992-1998. Salud Publica Mex 2002;44 Suppl 1:S82-92.

  12. Vazquez-Segovia LA, Sesma-Vazquez S, Hernandez-Avila M. Tobacco use in Mexican households: Results of the income and expenses of households, 1984-2000. Salud Publica Mex 2002;44 Suppl 1:S76-81.

  13. Tobacco Control and Development Policy. In: European Commission Roundtable 3-4 Brussels, Belgium: February 2003. Available in:

  14. http://europa.eu.int/comm/health/ph_determinants/life_style/Tobacco/round_table_international_tobacco_en.htm

  15. Macroeconomics and health: Investing in health for economic development. Report of the Commission on Macroeconomics and Health. WHO December 2001. Available in: http://www.cmhealth.org/

  16. Gallet CA, List JA. Cigarette demand: a meta-analysis of elasticities. Health Econ 2003; 12(10):821-35.

  17. Wasserman J, Manning WG, Newhouse JP et al. The effects of excise taxes and regulations on cigarette smoking. J Health Econ 1991;10(1): 43-64.

  18. Chaloupka FJ, Warner KE. The economics of smoking. In: Newhouse, JP, Cuyler AJ ed. The handbook of health economics. New York: North-Holland, 2000.

  19. Chaloupka, FJ, Hu T, Warner LE, Jacobs R, Yurekli A. The taxation of tobacco products. In: Jha P, Chaloupka FJ. 2000: Ch 10.

  20. Da Costa e Silva VL. The Brazilian cigarette industry: prospects for consumption reduction. In: Abedian I et al., eds. The economics of tobacco control: towards an optimal policy mix. Cape Town: Applied Fiscal Research Centre, University of Cape Town, 1998.

  21. Hu TW, Mao Z. Effects of cigarette tax on cigarette consumption and the Chinese economy. Tob control 2002; 11(2):105-108.

  22. Djutaharta T, Viriya-Surya H, Haidy N, Pasay A, Moertiningsih-Adioetomo H, Moertiningsih-Adioetomo S. Aggregate analysis of the impact of cigarette tax rate increases on tobacco consumption and government revenue: The case of Indonesia. HNP Discussion Paper. Economics Of Tobacco Control Paper No. 25. Indonesia: World Bank, 2005.

  23. Arunatilake N. An economic analysis of tobacco demand in Sri Lanka. Sri Lanka Economic Journal 2002; 3(1):96-120.

  24. Guindon GE, Perucic AM, Boisclair D. Higher tobacco prices and taxes in South East Asia. HNP Discussion Paper, Economics of Tobacco Control Paper No.11. Washington DC: World Bank, 2003.

  25. Sesma-Velásquez S, Campuzano-Rincón JC, López-Antuñano FJ, Knaul F, Hernández-Avila M. Price as determinant of tobacco consumption in México. Poster presentation #42697 at the 130th Annual Meeting of APHA. Philadelphia, EUA. 2002, November 12.

  26. Moertiningsih Adioetomo S, Djutaharta T, Djutaharta H. Cigarette consumption, taxation and household income: Indonesia case study. World Bank Health, Nutrition and Population (HNP) Discussion Paper.

  27. Economics Of Tobacco Control Paper No. 26. Indonesia: World Bank, 2005.

  28. Nyo Nyo K, Zaw KK, Naing KK. The economics of tobacco control in Myanmar. HNP Discussion Paper, Economics of Tobacco Control Paper No.14. Washington DC: World Bank, 2003.

  29. Isra S et al. The economics of tobacco in Thailand. HNP Discussion Paper, Economics of Tobacco Control Paper No 15. Washington DC: World Bank, 2003.

  30. Lance PM, Akin JS, Dow WH, Loh C. Is cigarette smoking in poorer nations highly sensitive to price? Evidence from Russia and China. Journal of Health Economics 2004; 23:173-189

  31. Sayginsoy, Yürekli A, de Beyer J. Cigarrette demand, taxation and the poor: a cause study of Bulgaria. California: Center for Tobacco Control Research and Education, 2002.

  32. Van Walbeek C. The distributional impact of tobacco excise increases. S Afr J Econ 2002; 70(3):560-578.

  33. Laxminarayan R, Deolalikar A. Tobacco initiation, cessation and change: Evidence from Vietnam. Health Econ 2004; 13(12): 1191-1201.

  34. Da Costa e Silva VL, Goldfard MM, Turci SRB, eds. Brazilian cigarettes: Analysis and proposals to reduce consumption [Portuguese]. Rio De Janeiro: INCA/CONPREV, 1999.

  35. Tobacco control country profiles. Atlanta, GA: American Cancer Society; 2000. Available in: http://www1.worldbank.org/tobacco/countrybrief.asp)

  36. Ranson K, Jha P, Chaloupka FJ, Yurekli A. Effectiveness and cost-effectiveness of price increases and other tobacco control policies. In: Jha P, Chaloupka FJ, eds. Tobacco control in developing countries. Oxford: Oxford University Press, 2000:427-447.

  37. Kenkel D, Chen L. Consumer information and tobacco use. In: Jha P, Chaloupka FJ, eds. Tobacco control in developing countries. Oxford: Oxford University Press, 2000:177-214.

  38. Woolery T, Asma S, Sharp D. Clean indoor-air laws and youth access. In: Jha P, Chaloupka FJ, eds. Tobacco control in developing countries. Oxford: Oxford University Press, 2000:273-286.

  39. Sansores RH, Giraldo-Buitrago F, Valdelamar-Vazquez F, Ramirez-Venegas A. The impact of mass media on an anti-tobacco campaign. Salud Publica Méx 2002;44 Suppl 1:S101-108.

  40. Warner KE, Slade J, Sweanor DT. The emerging market for long-term nicotine maintenance. JAMA 1997; 278:1087-1092.

  41. Warner KE, Fulton GA, Nicolas P, Grimes DR. Employment implications of declining tobacco product sales for the regional economies of the United States. JAMA 1996: 275;1241-6.

  42. Jacobs R, Gale F, Capehart T, Zhang P, Jha P. The supply-side effects of tobacco control policies. In: Jha P and Chaloupka FJ, eds. Tobacco control in developing countries. Oxford: Oxford University Press, 2000:311-341.

  43. Sunley EM, Yurekli A, Chaloupka FJ. The design, administration and potential revenue of tobacco excises. In: Jha P, Chaloupka FJ, eds. Tobacco Control in developing countries. Oxford: Oxford University Press, 2000:409-426.

  44. A win-win: Enhancing public health and public revenue. Canada:Canadian Coalition For Action on Tobacco, January 2004.

  45. Saxenian H, McGreevey B. China: Issues and options in health financing. World Bank Report No. 15278-CHA. Washington DC: World Bank,1996.

  46. Merriman D, Chaloupka FJ, Yurekli A. How big is the worldwide cigarette smuggling problem? In: Jha P, Chaloupka FJ, eds. Tobacco control in developing countries. Oxford: Oxford University Press, 2000:365-392.

  47. Warner KE. The economics of tobacco: myths and realities. Tobacco control 2000; 9:78-89.

  48. Joossens L, Raw M. Smuggling and cross-border shopping of tobacco in Europe. BMJ 1995; 310:1393-1397

  49. Hu T, Mao Z, Liu Y, de Beyer J, Ong M. Smoking, standard of living, and poverty in China. Tob Control 2005;14:247-250.

  50. United Nations Economic and Social Council Ad hoc Inter-Agency Task Force on Tobacco Control Report of the Secretary-General. New York: UN, 2004.

  51. Jha P, Chaloupka FJ. Curbing the epidemic: governments and the economics of tobacco control. Washington DC: World Bank, 1999.

  52. Jha P, Musgrove P, Chaloupka FJ, Yurekli A. The economic rationale for intervention in the tobacco market. In: Jha P, Chaloupka FJ, eds. Tobacco control in developing countries. Oxford: Oxford University Press, 2000:153-174.

  53. Warner KE, Chaloupka FJ, Cook PJ, Manning WG, Newhouse JP, Novotny TE, et al. Criteria for determining an optimal cigarette tax: the economist’s perspective. Tob Control 1995; 4: 380-386.

  54. Fong GT, Hammond D, Laux FL, Zanna MP, Cummings KM, Borland R, et al. The near-universal experience of regret among smokers in four countries: Findings from the International Tobacco Control Policy Evaluation Survey. Nicotine Tob Res 2004;6 suppl 3:S341-S351.

  55. Martin JP, Peruga A. The global youth tobacco survey: Results in the Americas. Epidemiological Bulletin. PAHO 2002; 23(2).

  56. Valdes-Salgado R, Hernandez-Avila M, Amor JS. Tobacco consumption in the Americas: Elements for an anti-smoking program. Salud Publica Mex 2002;44 Suppl 1:S125-135.

  57. Bobak M, Jha P, Nguyen S, Jarvis M. Poverty and smoking. In: Jha P, Chaloupka FJ, ed. Tobacco control in developing countries. Oxford: Oxford University Press, 2000: Ch3.

  58. Karki YB, Pant KD, Pande BR. The economics of tobacco in Nepal. HNP Discussion Paper. Economics of Tobacco Control Paper No 13. Washington DC: World Bank, 2003.

  59. Nyo Nyo K, Zaw KK, Naing KK. The economics of tobacco control in Myanmar. HNP Discussion Paper. Economics of Tobacco Control Paper No.14. Washington DC: World Bank, 2003.

  60. Sesma-Vazquez S, Campuzano-Rincon JC, Carreon-Rodriguez VG, Knaul F, Lopez-Antunano FJ, Hernandez-Avila M. El comportamiento de la demanda de tabaco en México: 1992-1998. Salud Publica Mex 2002;44 Suppl 1:S82-92.

  61. Vazquez-Segovia LA, Sesma-Vazquez S, Hernandez-Avila M. Tobacco use in Mexican households: Results of the income and expenses of households, 1984-2000. Salud Publica Mex 2002;44 Suppl 1:S76-81.

  62. Tobacco Control and Development Policy. In: European Commission Roundtable 3-4 Brussels, Belgium: February 2003. Available in: http://europa.eu.int/comm/health/ph_determinants/life_style/Tobacco/round_table_international_tobacco_en.htm

  63. Macroeconomics and health: Investing in health for economic development. Report of the Commission on Macroeconomics and Health. WHO December 2001. Available in: http://www.cmhealth.org/

  64. Gallet CA, List JA. Cigarette demand: a meta-analysis of elasticities. Health Econ 2003; 12(10):821-35.

  65. Wasserman J, Manning WG, Newhouse JP et al. The effects of excise taxes and regulations on cigarette smoking. J Health Econ 1991;10(1): 43-64.

  66. Chaloupka FJ, Warner KE. The economics of smoking. In: Newhouse, JP, Cuyler AJ ed. The handbook of health economics. New York: North-Holland, 2000.

  67. Chaloupka, FJ, Hu T, Warner LE, Jacobs R, Yurekli A. The taxation of tobacco products. In: Jha P, Chaloupka FJ. 2000: Ch 10.

  68. Da Costa e Silva VL. The Brazilian cigarette industry: prospects for consumption reduction. In: Abedian I et al., eds. The economics of tobacco control: towards an optimal policy mix. Cape Town: Applied Fiscal Research Centre, University of Cape Town, 1998.

  69. Hu TW, Mao Z. Effects of cigarette tax on cigarette consumption and the Chinese economy. Tob control 2002; 11(2):105-108.

  70. Djutaharta T, Viriya-Surya H, Haidy N, Pasay A, Moertiningsih-Adioetomo H, Moertiningsih-Adioetomo S. Aggregate analysis of the impact of cigarette tax rate increases on tobacco consumption and government revenue: The case of Indonesia. HNP Discussion Paper. Economics Of Tobacco Control Paper No. 25. Indonesia: World Bank, 2005.

  71. Arunatilake N. An economic analysis of tobacco demand in Sri Lanka. Sri Lanka Economic Journal 2002; 3(1):96-120.

  72. Guindon GE, Perucic AM, Boisclair D. Higher tobacco prices and taxes in South East Asia. HNP Discussion Paper, Economics of Tobacco Control Paper No.11. Washington DC: World Bank, 2003.

  73. Sesma-Velásquez S, Campuzano-Rincón JC, López-Antuñano FJ, Knaul F, Hernández-Avila M. Price as determinant of tobacco consumption in México. Poster presentation #42697 at the 130th Annual Meeting of APHA. Philadelphia, EUA. 2002, November 12.

  74. Moertiningsih Adioetomo S, Djutaharta T, Djutaharta H. Cigarette consumption, taxation and household income: Indonesia case study. World Bank Health, Nutrition and Population (HNP) Discussion Paper. Economics Of Tobacco Control Paper No. 26. Indonesia: World Bank, 2005.

  75. Nyo Nyo K, Zaw KK, Naing KK. The economics of tobacco control in Myanmar. HNP Discussion Paper, Economics of Tobacco Control Paper No.14. Washington DC: World Bank, 2003.

  76. Isra S et al. The economics of tobacco in Thailand. HNP Discussion Paper, Economics of Tobacco Control Paper No 15. Washington DC: World Bank, 2003.

  77. Lance PM, Akin JS, Dow WH, Loh C. Is cigarette smoking in poorer nations highly sensitive to price? Evidence from Russia and China. Journal of Health Economics 2004; 23:173-189

  78. Sayginsoy, Yürekli A, de Beyer J. Cigarrette demand, taxation and the poor: a cause study of Bulgaria. California: Center for Tobacco Control Research and Education, 2002.

  79. Van Walbeek C. The distributional impact of tobacco excise increases. S Afr J Econ 2002; 70(3):560-578.

  80. Laxminarayan R, Deolalikar A. Tobacco initiation, cessation and change: Evidence from Vietnam. Health Econ 2004; 13(12): 1191-1201.

  81. Da Costa e Silva VL, Goldfard MM, Turci SRB, eds. Brazilian cigarettes: Analysis and proposals to reduce consumption [Portuguese]. Rio De Janeiro: INCA/CONPREV, 1999.

  82. Tobacco control country profiles. Atlanta, GA: American Cancer Society; 2000. Available in: http://www1.worldbank.org/tobacco/countrybrief.asp)

  83. Ranson K, Jha P, Chaloupka FJ, Yurekli A. Effectiveness and cost-effectiveness of price increases and other tobacco control policies. In: Jha P, Chaloupka FJ, eds. Tobacco control in developing countries. Oxford: Oxford University Press, 2000:427-447.

  84. Kenkel D, Chen L. Consumer information and tobacco use. In: Jha P, Chaloupka FJ, eds. Tobacco control in developing countries. Oxford: Oxford University Press, 2000:177-214.

  85. Woolery T, Asma S, Sharp D. Clean indoor-air laws and youth access. In: Jha P, Chaloupka FJ, eds. Tobacco control in developing countries. Oxford: Oxford University Press, 2000:273-286.

  86. Sansores RH, Giraldo-Buitrago F, Valdelamar-Vazquez F, Ramirez-Venegas A. The impact of mass media on an anti-tobacco campaign. Salud Publica Méx 2002;44 Suppl 1:S101-108.

  87. Warner KE, Slade J, Sweanor DT. The emerging market for long-term nicotine maintenance. JAMA 1997; 278:1087-1092.

  88. Warner KE, Fulton GA, Nicolas P, Grimes DR. Employment implications of declining tobacco product sales for the regional economies of the United States. JAMA 1996: 275;1241-6.

  89. Jacobs R, Gale F, Capehart T, Zhang P, Jha P. The supply-side effects of tobacco control policies. In: Jha P and Chaloupka FJ, eds. Tobacco control in developing countries. Oxford: Oxford University Press, 2000:311-341.

  90. Sunley EM, Yurekli A, Chaloupka FJ. The design, administration and potential revenue of tobacco excises. In: Jha P, Chaloupka FJ, eds. Tobacco Control in developing countries. Oxford: Oxford University Press, 2000:409-426.

  91. A win-win: Enhancing public health and public revenue. Canada:Canadian Coalition For Action on Tobacco, January 2004.

  92. Saxenian H, McGreevey B. China: Issues and options in health financing. World Bank Report No. 15278-CHA. Washington DC: World Bank,1996.

  93. Merriman D, Chaloupka FJ, Yurekli A. How big is the worldwide cigarette smuggling problem? In: Jha P, Chaloupka FJ, eds. Tobacco control in developing countries. Oxford: Oxford University Press, 2000:365-392.

  94. Warner KE. The economics of tobacco: myths and realities. Tobacco control 2000; 9:78-89.

  95. Joossens L, Raw M. Smuggling and cross-border shopping of tobacco in Europe. BMJ 1995; 310:1393-1397

  96. Hu T, Mao Z, Liu Y, de Beyer J, Ong M. Smoking, standard of living, and poverty in China. Tob Control 2005;14:247-250.




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