The impact of e-cigarette and cigarette prices on e-cigarette and cigarette sales in California

Although numerous studies have examined the impact of cigarette prices on cigarette demand, research examining the impact of e-cigarette and cigarette prices on e-cigarette demand is relatively limited. This study estimated the impact of e-cigarette and cigarette prices on e-cigarette and cigarette...

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Main Authors: Tingting Yao, Hai-Yen Sung, Jidong Huang, Lela Chu, Gideon St. Helen, Wendy Max
Format: Article
Language:English
Published: Elsevier 2020-12-01
Series:Preventive Medicine Reports
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2211335520302023
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author Tingting Yao
Hai-Yen Sung
Jidong Huang
Lela Chu
Gideon St. Helen
Wendy Max
author_facet Tingting Yao
Hai-Yen Sung
Jidong Huang
Lela Chu
Gideon St. Helen
Wendy Max
author_sort Tingting Yao
collection DOAJ
description Although numerous studies have examined the impact of cigarette prices on cigarette demand, research examining the impact of e-cigarette and cigarette prices on e-cigarette demand is relatively limited. This study estimated the impact of e-cigarette and cigarette prices on e-cigarette and cigarette sales in California.Using the 2012–2017 Nielsen Retail Scanner Data, we constructed e-cigarette prices, cigarette prices, and per capita e-cigarette and cigarette sales by year, quarter, and Nielsen scantrack market in California. E-cigarettes were categorized as disposable or reusable. Separate fixed-effects models estimated the impact of e-cigarette and cigarette prices on per capita disposable e-cigarette, reusable e-cigarette, and cigarette sales controlling for year, quarter, market, and smoke-free air law coverage.Average prices were $5.86 per pack of 20 cigarettes, $9.80 per disposable e-cigarette, and $19.11 per reusable e-cigarette. When prices of disposable e-cigarettes, reusable e-cigarettes, and cigarettes increased by 1%, per capita sales of the products decreased by 0.37%, 0.20%, and 0.21% respectively. Cigarette prices were positively associated with per capita sales of reusable e-cigarettes, indicating reusable e-cigarettes are substitutes for cigarettes. Reusable e-cigarette prices were positively associated with per capita sales of disposable e-cigarettes, indicating disposable e-cigarettes are substitutes for reusable e-cigarettes. No statistically significant association was found between disposable/reusable e-cigarette prices and cigarette sales.Our results suggest that raising prices of disposable e-cigarettes, reusable e-cigarettes, and cigarettes such as via tobacco excise tax increases would result in reduced sales for the products. Policymakers should consider the substitution between e-cigarettes and cigarettes when designing tobacco control policies.
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spelling doaj.art-a8cd18a57bd445afa0554c44dbd5d8492022-12-21T17:25:28ZengElsevierPreventive Medicine Reports2211-33552020-12-0120101244The impact of e-cigarette and cigarette prices on e-cigarette and cigarette sales in CaliforniaTingting Yao0Hai-Yen Sung1Jidong Huang2Lela Chu3Gideon St. Helen4Wendy Max5Institute for Health & Aging, School of Nursing, University of California, San Francisco, CA, USA; Center for Tobacco Control Research and Education, University of California, San Francisco, CA, USA; Corresponding author at: Institute for Health & Aging, School of Nursing, University of California, San Francisco, 490 Illinois Street, Floor 12, San Francisco, CA 94158, USA.Institute for Health & Aging, School of Nursing, University of California, San Francisco, CA, USA; Center for Tobacco Control Research and Education, University of California, San Francisco, CA, USASchool of Public Health, Georgia State University, Atlanta, GA, USAPhilip R. Lee Institute for Health Policy Studies, and Healthforce Center, University of California, San Francisco, CA, USAClinical Pharmacology Research Program, Division of Cardiology, Department of Medicine, University of California, San Francisco, CA, USA; Center for Tobacco Control Research and Education, University of California, San Francisco, CA, USAInstitute for Health & Aging, School of Nursing, University of California, San Francisco, CA, USA; Center for Tobacco Control Research and Education, University of California, San Francisco, CA, USAAlthough numerous studies have examined the impact of cigarette prices on cigarette demand, research examining the impact of e-cigarette and cigarette prices on e-cigarette demand is relatively limited. This study estimated the impact of e-cigarette and cigarette prices on e-cigarette and cigarette sales in California.Using the 2012–2017 Nielsen Retail Scanner Data, we constructed e-cigarette prices, cigarette prices, and per capita e-cigarette and cigarette sales by year, quarter, and Nielsen scantrack market in California. E-cigarettes were categorized as disposable or reusable. Separate fixed-effects models estimated the impact of e-cigarette and cigarette prices on per capita disposable e-cigarette, reusable e-cigarette, and cigarette sales controlling for year, quarter, market, and smoke-free air law coverage.Average prices were $5.86 per pack of 20 cigarettes, $9.80 per disposable e-cigarette, and $19.11 per reusable e-cigarette. When prices of disposable e-cigarettes, reusable e-cigarettes, and cigarettes increased by 1%, per capita sales of the products decreased by 0.37%, 0.20%, and 0.21% respectively. Cigarette prices were positively associated with per capita sales of reusable e-cigarettes, indicating reusable e-cigarettes are substitutes for cigarettes. Reusable e-cigarette prices were positively associated with per capita sales of disposable e-cigarettes, indicating disposable e-cigarettes are substitutes for reusable e-cigarettes. No statistically significant association was found between disposable/reusable e-cigarette prices and cigarette sales.Our results suggest that raising prices of disposable e-cigarettes, reusable e-cigarettes, and cigarettes such as via tobacco excise tax increases would result in reduced sales for the products. Policymakers should consider the substitution between e-cigarettes and cigarettes when designing tobacco control policies.http://www.sciencedirect.com/science/article/pii/S2211335520302023Own- and cross-price elasticityE-cigarettesCigarettesCalifornia
spellingShingle Tingting Yao
Hai-Yen Sung
Jidong Huang
Lela Chu
Gideon St. Helen
Wendy Max
The impact of e-cigarette and cigarette prices on e-cigarette and cigarette sales in California
Preventive Medicine Reports
Own- and cross-price elasticity
E-cigarettes
Cigarettes
California
title The impact of e-cigarette and cigarette prices on e-cigarette and cigarette sales in California
title_full The impact of e-cigarette and cigarette prices on e-cigarette and cigarette sales in California
title_fullStr The impact of e-cigarette and cigarette prices on e-cigarette and cigarette sales in California
title_full_unstemmed The impact of e-cigarette and cigarette prices on e-cigarette and cigarette sales in California
title_short The impact of e-cigarette and cigarette prices on e-cigarette and cigarette sales in California
title_sort impact of e cigarette and cigarette prices on e cigarette and cigarette sales in california
topic Own- and cross-price elasticity
E-cigarettes
Cigarettes
California
url http://www.sciencedirect.com/science/article/pii/S2211335520302023
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