New Evidence on Youth Smoking Behavior based on Experimental Price Increases |
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| Authors: | Hana Ross Lisa M Powell John A Tauras Frank J Chaloupka |
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| Institution: | Ross:;Research Economist, RTI International, 3040 Cornwallis Road, P.O. Box 12194, Research Triangle Park, NC 27709-2194. Phone 1-919-541-7345, Fax 1-919-541-6683, Email Powell:;Research Associate Professor, University of Illinois–Chicago and Fellow, Queen's University, 850 West Jackson Blvd., Suite 400, Chicago, IL 60607-3025. Phone 1-312-413-5423, Fax 1-312-355-2801, Email Tauras:;Assistant Professor, University of Illinois–Chicago, and Faculty Research Fellow, National Bureau of Economic Research, 601 S. Morgan Street, Room 2103, Chicago, IL 60607-7121. Phone 1-312-413-3289, Fax 1-312-996-3344, Email Chaloupka:;Professor of Economics, University of Illinois–Chicago, and Director, UIC Health Policy Center, 850 West Jackson Blvd., Suite 400, Chicago, IL 60607-3025. Phone 1-312-413-2287, Fax 1-312-355-2801, Email |
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| Abstract: | The high youth smoking prevalence remains an important public policy challenge into the 21st century. This study applies a unique approach to analyzing the impact of cigarette prices on youth smoking cessation by evaluating reactions among high school students to several alternative hypothetical price increases. It concludes that many young smokers believe that they would quit smoking or decrease their smoking intensity in response to a cigarette price increase. The estimated price elasticity of cessation is between 0.930 and 0.895. The results indicate that youth expect to change their smoking behavior even when the price change is relatively small. However, the behavioral change is most dramatic among those exposed to the largest price increases, suggesting a sustained impact of higher price on cigarette consumption. (JEL I18 ) |
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