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Obesity and smoking: can we catch two birds with one tax?

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  • D. Dragone
  • F. Manaresi
  • L. Savorelli

Abstract

The debate on tobacco taxes and fat taxes often treats smoking and eating as independent behaviors. However, since there exists medical and sociological evidence about the interdependence between eating and smoking choices, antismoking policies may also affect the obesity prevalence and fat taxes could influence smoking behavior. We address this issue from a theoretical standpoint and propose a dynamic rational model where eating and smoking are simultaneous choices that jointly affect body weight and addiction to smoking. Focusing on direct and cross price effects, we compare tobacco taxes and fat taxes and we show that a single policy tool can reduce both smoking and body weight. In particular, fat taxes can be more effective than tobacco taxes at simultaneously fighting obesity and smoking.

Suggested Citation

  • D. Dragone & F. Manaresi & L. Savorelli, 2013. "Obesity and smoking: can we catch two birds with one tax?," Working Papers wp873, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:wp873
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    Cited by:

    1. Barbieri, Paolo Nicola, 2015. "Body Weight, Dieting and Obesity Traps," MPRA Paper 67671, University Library of Munich, Germany.
    2. Strulik, Holger, 2018. "Smoking kills: An economic theory of addiction, health deficit accumulation, and longevity," Journal of Health Economics, Elsevier, vol. 62(C), pages 1-12.
    3. Paolo Nicola Barbieri, 2022. "Social distortion in weight perception: a decomposition of the obesity epidemic," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(2), pages 685-713, July.
    4. Costa-Font, Joan & Salmasi, Luca & Zaccagni, Sarah, 2021. "More Than a Ban on Smoking? Behavioural Spillovers of Smoking Bans in the Workplace," IZA Discussion Papers 14299, Institute of Labor Economics (IZA).
    5. Barbieri, Paolo Nicola, 2016. "Weight loss, obesity traps and policy policies," MPRA Paper 71327, University Library of Munich, Germany.
    6. Barbieri, Paolo Nicola, 2017. "Modelling body weight, dieting and obesity traps," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 468(C), pages 139-146.
    7. Becchetti, Leonardo & Solferino, Nazaria & Tessitore, Maria Elisabetta, 2014. "A dynamic model of Gambling addiction with social costs: theory and policy solutions," AICCON Working Papers 133-2014, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    8. John Cawley & Davide Dragone & Stephanie Von Hinke Kessler Scholder, 2016. "The Demand for Cigarettes as Derived from the Demand for Weight Loss: A Theoretical and Empirical Investigation," Health Economics, John Wiley & Sons, Ltd., vol. 25(1), pages 8-23, January.
    9. Luis Rodrigo Arnabal, 2021. "Optimal design of sin taxes in the presence of nontaxable sin goods," Health Economics, John Wiley & Sons, Ltd., vol. 30(7), pages 1580-1599, July.

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    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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