The Effect of E-cigarette Taxes on Substance Use

Dhaval Dave, Yang Liang, Johanna Maclean, Caterina Muratori () and Joseph J. Sabia

No 32302, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Public health advocates warn that the rapid growth of legal markets for electronic nicotine delivery systems (ENDS) may generate a “gateway” to marijuana and harder drug consumption, particularly among teenagers. This study explores the effects of ENDS taxes on substance use. We find that a one-dollar increase in ENDS taxes (2023$) is associated with a 1.0 to 1.5 percentage point decline in teen marijuana use and in co-use of ENDS and marijuana. This result is consistent with e-cigarettes and marijuana being economic complements. We also find that youth responses to ENDS taxes, in terms of their ENDS use and spillovers into marijuana use, appear to moderate over the longer term. We find no evidence that ENDS taxes affect drug treatment admissions or consumption of illicit drugs other than marijuana such as cocaine, methamphetamine, or opioids.

JEL-codes: H2 I12 I18 J13 (search for similar items in EconPapers)
Date: 2024-04
New Economics Papers: this item is included in nep-hea, nep-pbe and nep-pub
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