The association between cigarette affordability and consumption: An update.

<h4>Objectives</h4>This study calculates cigarette affordability for 78 countries worldwide from 2001 to 2014 using the Relative Income Price (RIP) ratio defined as the percentage of per capita GDP required to purchase 100 packs of cigarettes using the lowest price from Economist Intelli...

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Main Authors: Yanyun He, Ce Shang, Frank J Chaloupka
Format: Article
Language:English
Published: Public Library of Science (PLoS) 2018-01-01
Series:PLoS ONE
Online Access:https://doi.org/10.1371/journal.pone.0200665
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author Yanyun He
Ce Shang
Frank J Chaloupka
author_facet Yanyun He
Ce Shang
Frank J Chaloupka
author_sort Yanyun He
collection DOAJ
description <h4>Objectives</h4>This study calculates cigarette affordability for 78 countries worldwide from 2001 to 2014 using the Relative Income Price (RIP) ratio defined as the percentage of per capita GDP required to purchase 100 packs of cigarettes using the lowest price from Economist Intelligence Unit (EIU) database, examine the association between cigarette affordability and cigarette consumption, and calculate the affordability elasticity of demand.<h4>Design and methods</h4>RIP (2001-2014) was calculated for 16 low-income economies, 19 lower middle-income economies, 13 upper middle-income economies, and 30 high-income economies. Ordinary least square regressions were used to analyze the association between cigarette affordability and consumption.<h4>Results</h4>Per capita consumption continued to rise in low-income countries and decreased slightly in lower middle-income countries as the RIP of cigarette consistently declined in low- and lower middle-income economies from 2001 to 2014. The real cigarette prices continued to decline in low- and lower middle-income countries and continued to rise in upper middle- and high-income countries. Though cigarettes were more expensive in HICs than were in LMICs, cigarettes were more affordable in HICs than were in LMICs. The regression results show a 10% increase in the RIP of cigarettes led to a 2% decrease in per capita consumption. The affordability elasticity of demand differed significantly between HICs and LMICs. However, the effect of cigarette affordability on consumption has not changed over time.<h4>Conclusions</h4>To control the smoking epidemic, low- and lower middle-income countries should further increase cigarette prices. The rate of price increase should exceed the rate of economic growth and outpace the inflation rate to make cigarettes less affordable and thereby reducing tobacco use.
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spelling doaj.art-678c3727e96043fca52eedf37a3319cf2022-12-21T19:09:40ZengPublic Library of Science (PLoS)PLoS ONE1932-62032018-01-011312e020066510.1371/journal.pone.0200665The association between cigarette affordability and consumption: An update.Yanyun HeCe ShangFrank J Chaloupka<h4>Objectives</h4>This study calculates cigarette affordability for 78 countries worldwide from 2001 to 2014 using the Relative Income Price (RIP) ratio defined as the percentage of per capita GDP required to purchase 100 packs of cigarettes using the lowest price from Economist Intelligence Unit (EIU) database, examine the association between cigarette affordability and cigarette consumption, and calculate the affordability elasticity of demand.<h4>Design and methods</h4>RIP (2001-2014) was calculated for 16 low-income economies, 19 lower middle-income economies, 13 upper middle-income economies, and 30 high-income economies. Ordinary least square regressions were used to analyze the association between cigarette affordability and consumption.<h4>Results</h4>Per capita consumption continued to rise in low-income countries and decreased slightly in lower middle-income countries as the RIP of cigarette consistently declined in low- and lower middle-income economies from 2001 to 2014. The real cigarette prices continued to decline in low- and lower middle-income countries and continued to rise in upper middle- and high-income countries. Though cigarettes were more expensive in HICs than were in LMICs, cigarettes were more affordable in HICs than were in LMICs. The regression results show a 10% increase in the RIP of cigarettes led to a 2% decrease in per capita consumption. The affordability elasticity of demand differed significantly between HICs and LMICs. However, the effect of cigarette affordability on consumption has not changed over time.<h4>Conclusions</h4>To control the smoking epidemic, low- and lower middle-income countries should further increase cigarette prices. The rate of price increase should exceed the rate of economic growth and outpace the inflation rate to make cigarettes less affordable and thereby reducing tobacco use.https://doi.org/10.1371/journal.pone.0200665
spellingShingle Yanyun He
Ce Shang
Frank J Chaloupka
The association between cigarette affordability and consumption: An update.
PLoS ONE
title The association between cigarette affordability and consumption: An update.
title_full The association between cigarette affordability and consumption: An update.
title_fullStr The association between cigarette affordability and consumption: An update.
title_full_unstemmed The association between cigarette affordability and consumption: An update.
title_short The association between cigarette affordability and consumption: An update.
title_sort association between cigarette affordability and consumption an update
url https://doi.org/10.1371/journal.pone.0200665
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