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American Economic Journal: Applied Economics: Vol. 2 No. 1 (January 2010)

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The Effect of Bans and Taxes on Passive Smoking

Article Citation

Adda, Jérôme, and Francesca Cornaglia. 2010. "The Effect of Bans and Taxes on Passive Smoking." American Economic Journal: Applied Economics, 2(1): 1-32.

DOI: 10.1257/app.2.1.1

Abstract

We evaluate the effect of smoking bans and excise taxes on the exposure to tobacco smoke of nonsmokers, and we show their unintended consequences on children. Smoking bans perversely increase nonsmokers' exposure by displacing smokers to private places where they contaminate nonsmokers. We exploit data on bio-samples of cotinine, time use, and smoking cessation, as well as state and time variation in anti-smoking policies across US states. We find that higher taxes are an efficient way to decrease exposure to tobacco smoke. (JEL D12, H25, I12, I18, J13)

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Authors

Adda, Jérôme (U College London)
Cornaglia, Francesca (Queen Mary, U London)

JEL Classifications

D12: Consumer Economics: Empirical Analysis
H25: Business Taxes and Subsidies including sales and value-added (VAT)
I12: Health Production
I18: Health: Government Policy; Regulation; Public Health
J13: Fertility; Family Planning; Child Care; Children; Youth

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