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The (possible) effect of plain packaging on smoking prevalence in Australia: a trend analysis

Author

Listed:
  • Ashok Kaul
  • Michael Wolf

Abstract

A stated objective of the Australian Plain Packaging Act 2011 is to reduce smoking prevalence. We use the Roy Morgan Single Source (Australia) data set over the time period January 2001 to December 2013 to analyze whether this goal has been achieved in the first year since the implementation. In particular, we carry out a statistical trend analysis to study the (possible) effect of plain packaging on smoking prevalence. Two informative analyses help to draw conclusions on the (actual) effect of plain packaging on smoking prevalence in Australia. First, we look at the year of data before plain packaging was introduced, which happened in December 2012. Second, we compute confidence intervals around the estimated treatment effects. Our main results can be summarized as follows. First, if a statistical significance level of 5% is required, then there is no evidence at all for a plain packaging effect on smoking prevalence. Second, if one is willing to accept a relatively low level of statistical significance (that is, 10%), then there is evidence for a very short-lived plain packaging effect on smoking prevalence, namely in December 2012 only (after which smoking prevalence is statistically indistinguishable from its pre-existing trend). A formal power analysis demonstrates that the power of our inference methods is remarkably high.

Suggested Citation

  • Ashok Kaul & Michael Wolf, 2014. "The (possible) effect of plain packaging on smoking prevalence in Australia: a trend analysis," ECON - Working Papers 165, Department of Economics - University of Zurich.
  • Handle: RePEc:zur:econwp:165
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    File URL: https://www.zora.uzh.ch/id/eprint/97030/1/econwp165.pdf
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    References listed on IDEAS

    as
    1. James Heckman & Seong Hyeok Moon & Rodrigo Pinto & Peter Savelyev & Adam Yavitz, 2010. "Analyzing social experiments as implemented: A reexamination of the evidence from the HighScope Perry Preschool Program," Quantitative Economics, Econometric Society, vol. 1(1), pages 1-46, July.
    2. Ashok Kaul & Michael Wolf, 2014. "The (possible) effect of plain packaging on the smoking prevalence of minors in Australia: a trend analysis," ECON - Working Papers 149, Department of Economics - University of Zurich, revised May 2014.
    3. James Heckman & Seong Hyeok Moon & Rodrigo Pinto & Peter Savelyev & Adam Yavitz, 2010. "Analyzing social experiments as implemented: evidence from the HighScope Perry Preschool Program," CeMMAP working papers CWP22/10, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
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    Cited by:

    1. André Bonfrer & Pradeep K. Chintagunta & John H. Roberts & David Corkindale, 2020. "Assessing the Sales Impact of Plain Packaging Regulation for Cigarettes: Evidence from Australia," Marketing Science, INFORMS, vol. 39(1), pages 234-252, January.

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    More about this item

    Keywords

    Plain packaging; smoking prevalence; treatment effect; trend analysis;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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