The Relationship Between Cigarettes and Electronic Cigarettes: Evidence From Household Panel Data

45 Pages Posted: 22 Aug 2018

See all articles by Chad D. Cotti

Chad D. Cotti

University of Wisconsin - Oshkosh; University of Connecticut - Department of Agricultural and Resource Economics

Erik Nesson

Ball State University - Department of Economics

Nathan Tefft

Bates College

Date Written: July 30, 2018

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.

Keywords: Electronic Cigarettes, Cigarettes, Tobacco Control Policies, Cigarette Excise Taxes

JEL Classification: I10, I12, I18

Suggested Citation

Cotti, Chad D. and Nesson, Erik and Tefft, Nathan, The Relationship Between Cigarettes and Electronic Cigarettes: Evidence From Household Panel Data (July 30, 2018). Available at SSRN: https://ssrn.com/abstract=3222998 or http://dx.doi.org/10.2139/ssrn.3222998

Chad D. Cotti

University of Wisconsin - Oshkosh ( email )

800 Algoma Blvd
Oshkosh, WI WI 54901
United States

University of Connecticut - Department of Agricultural and Resource Economics ( email )

1376 Storrs Road, Unit 4066
Storrs, CT 06269
United States
9202034660 (Phone)

Erik Nesson (Contact Author)

Ball State University - Department of Economics ( email )

Muncie, IN 47306-0340
United States

Nathan Tefft

Bates College ( email )

Lewiston, ME 04240
United States

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