The relationship between cigarettes and electronic cigarettes: Evidence from household panel data

J Health Econ. 2018 Sep:61:205-219. doi: 10.1016/j.jhealeco.2018.08.001. Epub 2018 Aug 20.

Abstract

We use the Nielsen Consumer Panel to investigate the impact of tobacco control policies on purchases of electronic cigarettes (e-cigarettes), cigarettes, and smoking cessation products. We measure product quantity, product type, nicotine content, and liquid volume of e-cigarettes, and product quantity and nicotine content of cigarettes. Higher cigarette excise taxes decrease both cigarette and e-cigarette purchases, suggesting that cigarettes and e-cigarettes are complements, and higher cigarette excise taxes reduce the aggregate amount of nicotine purchased from cigarettes and e-cigarettes. Cigarette smoke-free air laws decrease cigarette purchases, while e-cigarette smoke-free air laws do not affect cigarette or e-cigarette purchases.

Keywords: Cigarette excise taxes; Cigarettes; E-cigarettes; Electronic cigarettes; Smoke-free air laws; Tobacco control policies.

MeSH terms

  • Adult
  • Electronic Nicotine Delivery Systems / economics
  • Electronic Nicotine Delivery Systems / statistics & numerical data*
  • Family Characteristics
  • Female
  • Humans
  • Male
  • Smoke-Free Policy / legislation & jurisprudence
  • Smoking Cessation / economics
  • Smoking Cessation / statistics & numerical data
  • Taxes / economics
  • Taxes / statistics & numerical data
  • Tobacco Products / economics
  • Tobacco Products / statistics & numerical data*
  • United States