Please use this identifier to cite or link to this item: https://doi.org/10.21256/zhaw-28992
Publication type: Article in scientific journal
Type of review: Peer review (publication)
Title: Cross-country and panel data estimates of the price elasticity of demand for cigarettes in Europe
Authors: Kohler, Andreas
Vinci, Linda
Mattli, Renato
et. al: No
DOI: 10.1136/bmjopen-2022-069970
10.21256/zhaw-28992
Published in: BMJ Open
Volume(Issue): 13
Issue: 6
Issue Date: 2023
Publisher / Ed. Institution: BMJ Publishing Group
ISSN: 2044-6055
Language: English
Subjects: Health economics; Health policy; Humans; Smoking; Gesundheitsökonomie; Raucherwaren; Zigarette; Europa
Subject (DDC): 362.1041: Health economics
Abstract: Objective: Our goal is to provide estimates of the price elasticity of demand for cigarettes in Europe as a basis for public health policy on tobacco taxation. Methods: We use secondary data on cigarette retail sales including illicit trade, prices, tobacco control measures and income from 2010 to 2020 of 27 European countries from Euromonitor, the WHO, the Tobacco Control Scale and the World Bank. We estimate the price elasticity of demand using instrumental variable regressions as well as panel data regressions taking into account that prices and quantities are determined simultaneously in the market. Results: Based on cross-section data at the country level, we find that during the decade from 2010 to 2020, the demand for cigarettes in Europe has become neither more nor less elastic. Our estimates of the price elasticity based on panel data are around −0.4 (95% CI −0.67 to –0.24), in line with previous estimates for high-income countries. Furthermore, our analysis shows that estimates of the price elasticity of demand that are based on data including illicit trade tend to be lower. This has also been found in the previous literature. Conclusions: By providing state-of-the-art, up-to-date estimates of the price elasticity of demand that are in line with the previous literature, we show that taxation can still be a cost-effective tobacco policy to reduce cigarette consumption and thus, the burden of smoking.
URI: https://digitalcollection.zhaw.ch/handle/11475/28992
Fulltext version: Published version
License (according to publishing contract): CC BY-NC 4.0: Attribution - Non commercial 4.0 International
Departement: School of Management and Law
Organisational Unit: Winterthur Institute of Health Economics (WIG)
Appears in collections:Publikationen School of Management and Law

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Kohler, A., Vinci, L., & Mattli, R. (2023). Cross-country and panel data estimates of the price elasticity of demand for cigarettes in Europe. BMJ Open, 13(6). https://doi.org/10.1136/bmjopen-2022-069970
Kohler, A., Vinci, L. and Mattli, R. (2023) ‘Cross-country and panel data estimates of the price elasticity of demand for cigarettes in Europe’, BMJ Open, 13(6). Available at: https://doi.org/10.1136/bmjopen-2022-069970.
A. Kohler, L. Vinci, and R. Mattli, “Cross-country and panel data estimates of the price elasticity of demand for cigarettes in Europe,” BMJ Open, vol. 13, no. 6, 2023, doi: 10.1136/bmjopen-2022-069970.
KOHLER, Andreas, Linda VINCI und Renato MATTLI, 2023. Cross-country and panel data estimates of the price elasticity of demand for cigarettes in Europe. BMJ Open. 2023. Bd. 13, Nr. 6. DOI 10.1136/bmjopen-2022-069970
Kohler, Andreas, Linda Vinci, and Renato Mattli. 2023. “Cross-Country and Panel Data Estimates of the Price Elasticity of Demand for Cigarettes in Europe.” BMJ Open 13 (6). https://doi.org/10.1136/bmjopen-2022-069970.
Kohler, Andreas, et al. “Cross-Country and Panel Data Estimates of the Price Elasticity of Demand for Cigarettes in Europe.” BMJ Open, vol. 13, no. 6, 2023, https://doi.org/10.1136/bmjopen-2022-069970.


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