The Effect of Bans and Taxes on Passive Smoking

Jerome Adda and Francesca Cornaglia

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: This paper evaluates the effect of smoking bans in public places on the exposure to tobacco smoke of non-smokers and contrasts it with the effect of excise taxes. Exploiting data on cotinine - a metabolite of nicotine - as well as state and time variation in anti-smoking policies across US states, we show that smoking bans in public places can perversely increase the exposure of non-smokers to tobacco smoke by displacing smokers to private places where they contaminate non-smokers, and in particular young children. In contrast, we find that higher taxes are an efficient way to decrease exposure to tobacco smoke, especially for those most exposed. We supplement this analysis by showing that bans have little effect on smoking cessation, and present evidence of displacement from public places using data on time use.

Keywords: smoking; taxes; bans (search for similar items in EconPapers)
JEL-codes: H2 I1 (search for similar items in EconPapers)
Date: 2009-10
New Economics Papers: this item is included in nep-pbe
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Citations: View citations in EconPapers (11)

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https://cep.lse.ac.uk/pubs/download/dp0950.pdf (application/pdf)

Related works:
Journal Article: The Effect of Bans and Taxes on Passive Smoking (2010)
Working Paper: The effect of bans and taxes on passive smoking (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0950

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