Do tobacco taxes reduce lung cancer mortality?

José-Julián Escario and José Alberto Molina

No 2000-17, Working Papers from FEDEA

Abstract: In this paper we have carried out a quantitative evaluation of the effects of special tobacco tax policies on smokers' health. Specifically, the results show that tobacco taxes would appear to be a useful tool for reducing long cancer mortality related to tobacco consumption. Thus, a 10% increase in tax will reduce tobacco consumption by 3.8% in the first year, which will give rise to a 1.12% reduction in the lung cancer mortality rate, a reduction which, in the long term, will be in the order of 8.81%. For the twelve European Union countries being considered, this means that 1,707 deaths will be avoided in the first year, 4,491 in the fifth year and 12,366 after the smoking population has been completely renewed.

JEL-codes: I12 I18 (search for similar items in EconPapers)
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