Economics and Tobacco Regulation

Abstract

Taxation is a crucial tool in the effort to attain a tobacco-free world. According research, increases in tobacco taxes have a positive correlation with the reduction of tobacco consumption. Even though the tobacco industry is among the successful industries, tobacco consumption kills more people than any other product. This paper through the lens of economics discusses the role of taxation in tobacco consumption. It discusses tobacco taxation as a tool to discourage smoking. Increasing tobacco taxes passed on to consumers in the form of higher tobacco product prices, is one of the most effective ways to prevent and reduce tobacco use. Placing higher prices on tobacco products encourage tobacco users to quit, helps sustain cessation and reduce consumption of tobacco among those who use tobacco.

Keywords: Economics, Tobacco regulation, taxation, cessation

DOI: 10.7176/JESD/11-2-13

Publication date: January 31^st 2020