Tobacco Pricing

Research

Increasing cigarette price increases likelihood of individual quit attempt; raise "left digit"
A recent study applies behavioral economic approaches to examine the relationship between the price of cigarettes and the probability of individuals’ quit attempts. In a cross-sectional research design, adult daily smokers estimated the probability of making a smoking cessation attempt within a range of cigarette prices. Researchers found price increases and smoking cessation had an inverted demand curve, meaning that there is a clear relationship between increasing the price of cigarettes and attempts to quit smoking. Significant increases in quit attempts were also seen when there was a change to the left digit of the price (e.g. a price increase from $5.80 to $6 per pack would be more impactful versus an increase from $5.79 to $5.99). To view the study abstract in Tobacco Control, click here.

top

State Policy

Flavored cigarillos soon will cost more in Ohio (OH)
Ohio lawmakers have more than doubled the tax on cigarillos as part of a newly approved two-year state budget. Under the new budget, the tax on cigarillos will jump from 17% to 37% of the wholesale price, making the tax on cigarillos the same percentage as is currently paid on cigarettes in Ohio. Proponents of the tax increase believe this is a significant step in reducing youth tobacco use in the state. The new state budget also allocates $3 million for smoking prevention and cessation and $2 million for enforcement of the state’s smoke-free workplace act over two years. Taxes on other smokeless tobacco products including loose tobacco, chewing tobacco, and regular cigars will remain at 17%. Click here to read more.

top

Back to Table of Contents