ArticleBMJ open2021
Estimating the price elasticity of demand for cigarettes in South Africa using the Deaton approach.
Article in BMJ open, 2021. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 5 papers.
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Who cites it
5 citing papers in PubMed.
- Article
- Article
- Cigarette Prices and Smoking Experimentation Among Zimbabwean Children: A Survival Analysis of the 2014 Global Youth Tobacco Survey.Nicotine & tobacco research : official journal of the Society for Research on Nicotine and Tobacco · 2024Article
- Cigarette prices and smoking among adults in eight sub-Saharan African countries: evidence from the Global Adult Tobacco Survey.Tobacco control · 2024Article
- Effect of cigarette prices on cigarette consumption in Ghana.Drug and alcohol dependence reports · 2022Article
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Authors and funding
5 authors.
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Abstract
objectiveTo estimate the price elasticity of demand for South Africa and thereby contribute to growing the evidence base of the likely impact of excise taxes on cigarette demand in low-income and middle-income countries.
methodsWe employ the Deaton method, using wave 5 data from the South African National Income Dynamics Study, to estimate the cigarette price elasticity for South Africa. We used a sample of 6820 households.
resultsOf the 6 820 households in the sample for which we had sufficient data, 1341 (19.7%) spent money on tobacco. The price elasticity of demand for cigarettes is estimated at -0.86 (95% CI -1.37 to -0.35), implying that the demand for cigarettes in South Africa declines by 8.6% for every 10% increase in price.
conclusionThe negative price elasticity estimate for South Africa indicates that increases in the excise tax are particularly effective in controlling cigarette consumption. However, given the presence of a significant illicit tobacco market in the country, it is important that authorities augment tax measures with strategies that curb the illicit trade in cigarettes.
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