Can Anti-Vaping Policies Curb Drinking Externalities? Evidence from E-Cigarette Taxation and Traffic Fatalities

Dhaval Dave, Yang Liang, Johanna Maclean, Joseph J. Sabia and Matthew Braaksma

No 30670, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Teenage drinking is a major public health concern, generating social costs of over $28 billion per year, including substantial external costs associated with alcohol-related traffic fatalities. At the same time, the high rate of electronic nicotine delivery systems (ENDS) use among teenagers has been deemed “an epidemic” by the U.S. Surgeon General, with state and local policymakers turning to e-cigarette taxes as a popular policy tool to curb nicotine vaping. This study is the first to explore the spillover effects of e-cigarette taxes on teenage drinking and alcohol-related traffic fatalities. We find that a one-dollar increase in e-cigarette taxes is associated with a 1 to 2 percentage-point reduction in the probability of binge drinking among teenagers and a 5 to 10 percent reduction in traffic fatalities involving teenagers driving under the influence of alcohol. Together, these results suggest the presence of alcohol-related health benefits from e-cigarette taxation.

JEL-codes: H71 I12 (search for similar items in EconPapers)
Date: 2022-11
New Economics Papers: this item is included in nep-hea and nep-tre
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