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Effect of smoke-free laws on bar value and profits

Author

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  • Alamar, B.
  • Glantz, S.A.

Abstract

The tobacco industry has claimed that smoke-free bar laws caused bar revenues to decline by 30%. After we controlled for economic variables, we found that bars located in areas with smoke-free laws sold for prices that were comparable to prices for similar bars in areas with no smoking restrictions. Other studies have reported that sales did not decline, and we also found that neither price nor sales declined. Therefore, bar owners' concerns that smoke-free laws will reduce the value of their bars are unfounded.

Suggested Citation

  • Alamar, B. & Glantz, S.A., 2007. "Effect of smoke-free laws on bar value and profits," American Journal of Public Health, American Public Health Association, vol. 97(8), pages 1400-1402.
    • Handle: RePEc:aph:ajpbhl:10.2105/ajph.2006.095315_3
    DOI: 10.2105/AJPH.2006.095315
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    Citations

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    Cited by:

    1. Peter Schulz & Uwe Hartung & Maddalena Fiordelli, 2012. "Effect of smoke-free legislation on Ticino gastronomy revenue," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 57(6), pages 861-866, December.
    2. Ce Shang, 2015. "The Effect of Smoke-Free Air Law in Bars on Smoking Initiation and Relapse among Teenagers and Young Adults," IJERPH, MDPI, vol. 12(1), pages 1-17, January.
    3. Silvia Tiezzi, 2009. "The Economic Impact of Clean Indoor Air Laws: A Review of Alternative Approaches and of Empirical findings," Department of Economics University of Siena 570, Department of Economics, University of Siena.
    4. Reichmann, Gerhard & Sommersguter-Reichmann, Margit, 2012. "The Austrian Tobacco Act in practice – Analysing the effectiveness of partial smoking bans in Austrian restaurants and bars," Health Policy, Elsevier, vol. 104(3), pages 304-311.
    5. Hans Melberg & Karl Lund, 2012. "Do smoke-free laws affect revenues in pubs and restaurants?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(1), pages 93-99, February.
    6. Ljudevit Pranic & Snjezana Pivac & Anela Colak, 2013. "Cafe Owners Attitudes Before The Enactment Of A Smoke-Free Legislation In Transition Countries," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 22(1), pages 57-78, june.
    7. Benjamin C. Alamar & Stanton A. Glantz, 2008. "Externalities in the Workplace: A Response to a Rejoinder to a Response to a Response to a Paper," Econ Journal Watch, Econ Journal Watch, vol. 5(2), pages 169-173, May.
    8. Klein, Elizabeth G. & Hood, Nancy E., 2015. "The smoking ban next door: Do hospitality businesses in border areas have reduced sales after a statewide smoke-free policy?," Health Policy, Elsevier, vol. 119(1), pages 44-49.

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