IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v56y2024i59p8753-8768.html
   My bibliography  Save this article

Estimating the effects of E-cigarette taxes: a generalized synthetic control approach

Author

Listed:
  • Xueting Deng
  • Yuqing Zheng

Abstract

We examine the effects of e-cigarette tax policies on the sales quantities, prices, and sales revenues of e-cigarettes, cigarettes, and smoking cessation products (SCP). The data we use is weekly purchases from Nielsen Retail Scanner Data between 2011 and 2017. With a generalized synthetic control (GSC) identification strategy, we measure the average tax effects of multiple treated regions in various treated periods against the untreated control regions and the untreated periods. We reach an estimate of −3.567 for the own-price elasticity of e-cigarette demand and an estimate of 0.433 for the pass-through rate of e-cigarette taxes to price in all treated regions. Our results indicate that cigarettes and SCP are substitutes for e-cigarettes. We also discover that e-cigarette taxes show heterogeneous effects under different policy motivations, with the ad valorem taxes having a larger impact on e-cigarette demand.

Suggested Citation

  • Xueting Deng & Yuqing Zheng, 2024. "Estimating the effects of E-cigarette taxes: a generalized synthetic control approach," Applied Economics, Taylor & Francis Journals, vol. 56(59), pages 8753-8768, December.
    • Handle: RePEc:taf:applec:v:56:y:2024:i:59:p:8753-8768
    DOI: 10.1080/00036846.2023.2293671
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2023.2293671
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2023.2293671?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:56:y:2024:i:59:p:8753-8768. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.