Price elasticity estimates for tobacco and other addictive goods in India

The tax base of tobacco in India is found to be heavily depended on about fifteen percent of the tobacco users who represent cigarettes smokers. Non-cigarette tobacco products used by the majority of tobacco users are largely out of the tax net. Analysis of the price elasticity of various tobacco products would bring out the potential of tax as an instrument to control tobacco use of any kind. In this context, this paper examines how the demand for a variety of tobacco products and addictive goods such as pan and alcohol respond to changes in prices. The spatial variations of prices that are obtained from a cross section of 120,000 households spread across the country have been used for this purpose. Estimates of price elasticities showed that the own price elasticity estimates of various addictive goods in India ranged between -0.5 to -1.0 with bidis, leaf tobacco and alcohol having elasticities close to unity, cigarettes being the least price elastic of all. As against the general notions regarding the complementarity between cigarettes and alcohol, our study nds that these are substitutes at least in urban India. We also observed that, over a five year period, the addictive goods such as bidis and leaf tobacco in India have become slightly more price responsive while elasticity of cigarettes and pan have stabilized. With some assumptions, it is shown that taxes on cigarettes can be raised nearly 2.5 times the current level while that of bidis can be raised tenfold without any fall in revenue.Tobacco, Bidi, Cigarette, Alcohol, Consumption, Elasticity, India

Price Elasticity Estimates for Tobacco and Other Addictive Goods in India

The tax base of tobacco in India is found to be heavily depended on about fifteen per cent of the tobacco users who represent cigarettes smokers. Non-cigarette tobacco products used by the majority of tobacco users are largely out of the tax net. Analysis of the price elasticity of various tobacco products would bring out the potential of tax as an instrument to control tobacco use of any kind. In this context, this paper examines how the demand for a variety of tobacco products and addictive goods such as pan and alcohol respond to changes in prices. The spatial variations of prices that are obtained from a cross section of 120,000 households spread across the country have been used for this purpose. Estimates of price elasticities showed that the own price elasticity estimates of various addictive goods in India ranged between -0.5 to -1.0 with bidis, leaf tobacco and alcohol having elasticities close to unity, cigarettes being the least price elastic of all. As against the general notions regarding the complementarity between cigarettes and alcohol, our study finds that these are substitutes at least in urban India. We also observed that, over a five year period, the addictive goods such as bidis and leaf tobacco in India have become slightly more price responsive while elasticity of cigarettes and pan have stabilized. With some assumptions, it is shown that taxes on cigarettes can be raised nearly 2.5 times the current level while that of bidis can be raised tenfold without any fall in revenue.Tobacco, Bidi, Cigarette, Alcohol, consumption, Elasticity, India

An Analysis of Household's Tobacco Consumption Decisions : Evidence from India

Tobacco products such as bidi and cigarette, both of which are smoked, cater to different kinds of households in India, and analyzing them separately may yield results that are useful for public policy. Hence, we analyze the consumption patterns, socio-economic distribution and the household choice of a variety of tobacco products across rural and urban India. Using a Multinomial Logit Model, we analyze the choice behavior of a household in deciding whether and which tobacco products to consume. Household level data from National Sample Survey in India for the year 1999-2000, which has information on 120,309 households, has been used for this purpose. We found that most forms of tobacco consumption are higher among socially disadvantaged and low-income groups in the country. Variables such as education, sex ratio, alcohol and pan consumption were found to be signifcant factors determining tobacco consumption habits of Indian households. The effect of some of the factors on the probability of consumption differs for certain types of tobacco products, increasing some, and decreasing others. Addictive goods such as alcohol and pan were found to be complimentary to tobacco consumption.Tobacco, Bidi, Cigarette, consumption, Multinomial Logit, India

Crowding-out Effect of Tobacco Expenditure And Its Implications on Intra-Household Resource Allocation

The aim of this paper is to examine if tobacco consumption crowds-out consumption of basic needs and whether it has implications for nutrition intake and intra-household resource allocation in developing countries. In the process we also examine whether preference over other commodities for tobacco users and non users vary significantly. Using a nationally representative household sample survey from India for the year 1999-2000, we analyze the pattern of spending on various groups of commodities by the status of tobacco consumption of households. Average per capita per diem intake of nutrients such as calorie, fat and protein were reported to be lower among the high tobacco spending group of households vis-`a-vis the no-spending category. A system of quadratic conditional Engel curves was estimated for a set of ten broad groups of commodities. Separability between tobacco and most other goods was rejected. The results suggest that tobacco consuming households had lower consumption of certain commodities such as milk, clean fuels and entertainment which has direct bearing on mostly children and female members in the household suggesting possible gender effects and biases in intra-household resource allocation. Tobacco spending also found to have negative effects on household nutrition intake.Tobacco, consumption, poverty, crowd-out, India.

Incorporating a Structural Approach to Reducing the Burden of Non-Communicable Diseases

Background: Non-communicable diseases (NCDs) account for over two-thirds of deaths worldwide, and global efforts to address NCDs have accelerated. Current prevention and control efforts rely primarily on individual behavior/lifestyle approaches that place the onus of responsibility for health on the individual. These approaches, however, have not stopped the increasing trend of NCDs worldwide. Thus, there is urgent need for exploring alternative approaches in order to attain the aim of reducing global premature NCDs mortality by 25% by 2025, and meeting the NCD reduction objective in the Sustainable Development Goals. Discussion: We suggest the need for a structural approach to addressing the NCDs epidemic that integrates social science and public health theories. We evaluate two overarching principles (empowerment and human rights) and three social determinants of health (labor and employment, trade and industry, and macroeconomics) addressed in the 2013 Global Action Plan for the Prevention and Control of NCDs to demonstrate how a structural approach to NCDs can be incorporated into existing NCD interventions. For each area considered, theoretical considerations for structural thinking are provided and conclude with recommended actions. Conclusion: Achieving the global health agenda goals of reducing NCDs mortality will require a shift to a paradigm that embraces concerted efforts to address both behavioral/lifestyle factors and structural dimensions of NCDs

Prevalence and Correlates of Tobacco Use Among School-Going Adolescents in Madagascar

Approximately 90% of adults start smoking during adolescence, with limited studies conducted in low-and-middle-income countries where over 80% of global tobacco users reside. The study aims to estimate prevalence and identify predictors associated with adolescents\u27 tobacco use in Madagascar. We utilized tobacco-related information of 1184 school-going adolescents aged 13-15 years, representing a total of 296,111 youth from the 2008 Madagascar Global Youth Tobacco Survey to determine the prevalence of tobacco use. Gender-wise multivariable logistic regression models were conducted to identify key predictors.Approximately 19% (30.7% males; 10.2% females) of adolescents currently smoke cigarettes, and 7% (8.5% males and 5.8% females) currently use non-cigarette tobacco products. Regardless of sex, peer smoking behavior was significantly associated with increased tobacco use among adolescents. In addition, exposures to tobacco industry promotions, secondhand smoke (SHS) and anti-smoking media messages were associated with tobacco use. The strong gender gap in the use of non-cigarette tobacco products, and the role of peer smoking and industry promotions in adolescent females\u27 tobacco use should be of major advocacy and policy concern. A comprehensive tobacco control program integrating parental and peer education, creating social norms, and ban on promotions is necessary to reduce adolescents\u27 tobacco use

Estimating the Magnitude of Illicit Cigarette Trade in Bangladesh:Protocol for a Mixed-Methods Study

The illicit tobacco trade undermines the effectiveness of tobacco tax policies; increases the availability of cheap cigarettes, which, in turn, increases tobacco use and tobacco related deaths; and causes huge revenue losses to governments. There is limited evidence on the extent of illicit tobacco trade particularly cigarettes in Bangladesh. The paper presents the protocol for a mixed-methods study to estimate the extent of illicit cigarette trade in Bangladesh. The study will address three research questions: (a) What proportion of cigarettes sold as retail are illicit? (b) What are the common types of tax avoidance and tax evasion? (c) Can pack examination from the trash recycle market be considered as a new method to assess illicit trade in comparison to that from retailers and streets? Following an observational research method, data will be collected utilizing empty cigarette packs from three sources: (a) retailers; (b) streets; and (c) trash recycle market. In addition, a structured questionnaire will be used to collect information from retailers selling cigarettes. We will select post codes as Primary Sampling Unit (PSU) using a multi-stage random sampling technique. We will randomly select eight districts from eight divisions stratified by those with land border and non-land border; and within each district, we will randomly select ten postcodes, stratified by rural (five) and urban (five) PSU to ensure maximum geographical variation, leading to a total of eighty post codes from eight districts. The analysis will report the proportions of packs that do not comply with the study definition of illicit. Independent estimates of illicit tobacco are rare in low-and middle-income countries such as Bangladesh. Findings will inform efforts by revenue authorities and others to address the effects of illicit trade and counter tobacco industry claims

Parental smoking and child poverty in the UK: an analysis of national survey data

BACKGROUND: In 2011/12 approximately 2.3 million children, 17% of children in the UK, were estimated to be in relative poverty. Cigarette smoking is expensive and places an additional burden on household budgets, and is strongly associated with socioeconomic deprivation. The aim of this study was to provide an illustrative first estimate of the extent to which parental smoking exacerbates child poverty in the UK. METHODS: Findings from the 2012 Households Below Average Income report and the 2012 Opinions and Lifestyle Survey were combined to estimate the number of children living in poor households containing smokers; the expenditure of typical smokers in these households on tobacco; and the numbers of children drawn into poverty if expenditure on smoking is subtracted from household income. RESULTS: 1.1 million children - almost half of all children in poverty - were estimated to be living in poverty with at least one parent who smokes; and a further 400,000 would be classed as being in poverty if parental tobacco expenditure were subtracted from household income. CONCLUSIONS: Smoking exacerbates poverty for a large proportion of children in the UK. Tobacco control interventions which effectively enable low income smokers to quit can play an important role in reducing the financial burden of child poverty

Impact of tobacco price and taxation on affordability and consumption of tobacco products in the Southeast Asia Region : a systematic review

Introduction: The objective of the review was to study the impact of tobacco taxes or prices on affordability and/or consumption of tobacco products in WHO-South East Asia Region (SEAR) countries, overall, and by socioeconomic status; and change in consumption of one tobacco product for a given change in price/tax on other tobacco product. Methods: The searches were run on five databases (Medline, Embase, Cinahl, EconLit, Tobacconomics) using keywords such as ‘tobacco’, ‘tax’, ‘price’, ‘impact’ with their synonyms. Additionally, first 100 articles through google search and e-reports from targeted sources were also reviewed. Studies illustrating the impact of prices/taxes on consumption/affordability of tobacco products in SEAR, available in English language, with no limitation on time were included in the review. After two steps of screening, data from 28 studies were extracted using a structured, and pre-tested data extraction form. Results: Out of the total twenty-eight studies, twelve studies reported an inverse association between price and consumption/affordability while 11 studies reported no or positive association between price and consumption/affordability of tobacco products. Five studies had unclear interpretations. Majority of studies estimated that the less affluent group were more price responsive as compared to the more affluent group. Some studies indicated increased consumption of one product in response to price rise of other product, although, the findings were inconsistent. Conclusions: The findings of our review support the use of tobacco tax and price measures as effective tools to address the tobacco epidemic. Our findings however also emphasise the importance of increasing tobacco product taxes and prices sufficiently to outweigh the effects of income growth, in order for the measures to be effective in reducing the affordability and consumption of tobacco products