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The relationship between cigarettes and electronic cigarettes: Evidence from household panel data

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  • Cotti, Chad
  • Nesson, Erik
  • Tefft, Nathan

Abstract

We use the Nielsen Consumer Panel to investigate the impact of tobacco control policies on purchases of electronic cigarettes (e-cigarettes), cigarettes, and smoking cessation products. We measure product quantity, product type, nicotine content, and liquid volume of e-cigarettes, and product quantity and nicotine content of cigarettes. Higher cigarette excise taxes decrease both cigarette and e-cigarette purchases, suggesting that cigarettes and e-cigarettes are complements, and higher cigarette excise taxes reduce the aggregate amount of nicotine purchased from cigarettes and e-cigarettes. Cigarette smoke-free air laws decrease cigarette purchases, while e-cigarette smoke-free air laws do not affect cigarette or e-cigarette purchases.

Suggested Citation

  • Cotti, Chad & Nesson, Erik & Tefft, Nathan, 2018. "The relationship between cigarettes and electronic cigarettes: Evidence from household panel data," Journal of Health Economics, Elsevier, vol. 61(C), pages 205-219.
    • Handle: RePEc:eee:jhecon:v:61:y:2018:i:c:p:205-219
    DOI: 10.1016/j.jhealeco.2018.08.001
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    References listed on IDEAS

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    Cited by:

    1. Christopher Carpenter & Hai V. Nguyen, 2020. "Intended and Unintended Effects of Banning Menthol Cigarettes," NBER Working Papers 26811, National Bureau of Economic Research, Inc.
    2. Pesko, Michael F. & Currie, Janet M., 2019. "E-cigarette minimum legal sale age laws and traditional cigarette use among rural pregnant teenagers," Journal of Health Economics, Elsevier, vol. 66(C), pages 71-90.
    3. Henry Saffer & Daniel Dench & Michael Grossman & Dhaval Dave, 2020. "E-cigarettes and adult smoking: Evidence from Minnesota," Journal of Risk and Uncertainty, Springer, vol. 60(3), pages 207-228, June.
    4. Chen Huang & Feng Liu & Shijun You, 2021. "The impact of minimum wage increases on cigarette smoking," Health Economics, John Wiley & Sons, Ltd., vol. 30(9), pages 2063-2091, September.
    5. Dean R. Lillard, 2020. "The Economics of Nicotine Consumption," NBER Working Papers 26912, National Bureau of Economic Research, Inc.
    6. Aisha Baisalova, 2022. "Exploring Border Effects: Sensitivity of Cigarette Consumption to Excise Tax," CERGE-EI Working Papers wp726, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    7. Rahi Abouk & Scott Adams & Bo Feng & Johanna Catherine Maclean & Michael F. Pesko, 2023. "The effect of e‐cigarette taxes on pre‐pregnancy and prenatal smoking," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(4), pages 908-940, September.
    8. Michael E. Darden, 2024. "Optimal e-cigarette policy when preferences and internalities are correlated," Journal of Risk and Uncertainty, Springer, vol. 68(2), pages 107-131, April.
    9. Cotti, Chad & Courtemanche, Charles & Maclean, Joanna Catherine & Nesson, Erik & Pesko, Michael F. & Tefft, Nathan W., 2022. "The effects of e-cigarette taxes on e-cigarette prices and tobacco product sales: Evidence from retail panel data," Journal of Health Economics, Elsevier, vol. 86(C).
    10. Hunt Allcott & Charlie Rafkin, 2020. "Optimal Regulation of E-cigarettes: Theory and Evidence," NBER Working Papers 27000, National Bureau of Economic Research, Inc.
    11. Abouk, Rahi & De, Prabal K. & Pesko, Michael F., 2024. "Estimating the effects of tobacco-21 on youth tobacco use and sales," Journal of Health Economics, Elsevier, vol. 94(C).
    12. Michael F. Pesko & Charles J. Courtemanche & Johanna Catherine Maclean, 2019. "The Effects of Traditional Cigarette and E-Cigarette Taxes on Adult Tobacco Product Use," NBER Working Papers 26017, National Bureau of Economic Research, Inc.
    13. Wei Fu & Chen Huang & Feng Liu, 2023. "Unemployment benefits, food insecurity, and supplemental nutrition assistance program spending," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(2), pages 479-502, March.
    14. Michael F. Pesko & Charles J. Courtemanche & Johanna Catherine Maclean, 2020. "The effects of traditional cigarette and e-cigarette tax rates on adult tobacco product use," Journal of Risk and Uncertainty, Springer, vol. 60(3), pages 229-258, June.

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