The Effect of Prices on Youth Cigarette and E-Cigarette Use: Economic Substitutes or Complements?

32 Pages Posted: 30 Nov 2017  

Michael Pesko

Georgia State University - Department of Economics

Casey Warman

Dalhousie University

Date Written: September 5, 2017

Abstract

We explore the effect of e-cigarette disposable and refill cartridge prices on youth use of e-cigarettes and cigarettes. We document substantial price variation from 2011 to 2015 in e-cigarette prices from 35,000 retailers participating in the Nielsen retail data system. We match this price variation to survey data on current use of e-cigarettes and cigarettes for over 80,000 11-17 year olds from the National Youth Tobacco Survey (NYTS). We find that higher e-cigarette cartridge prices reduce e-cigarette use and increase current cigarette consumption, especially for males and for older teenagers. Our results suggest that on average e-cigarettes reduce youth smoking.

Keywords: E-cigarette; Tobacco control; Smoking; Vaping; Youth substance use; Tax policy

JEL Classification: I180, H710

Suggested Citation

Pesko, Michael and Warman, Casey, The Effect of Prices on Youth Cigarette and E-Cigarette Use: Economic Substitutes or Complements? (September 5, 2017). Available at SSRN: https://ssrn.com/abstract=3077468 or http://dx.doi.org/10.2139/ssrn.3077468

Michael Pesko (Contact Author)

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States

Casey Warman

Dalhousie University ( email )

Halifax, Nova Scotia B3H 3J5
Canada

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