ENDS Taxes: Difference between revisions

2021 Intended and Unintended Effects of E-cigarette Taxes on Youth Tobacco Use
(2021 Intended and Unintended Effects of E-cigarette Taxes on Youth Tobacco Use)
Line 6: Line 6:


='''Studies'''=
='''Studies'''=
===2021: [https://www.nber.org/papers/w29216 Intended and Unintended Effects of E-cigarette Taxes on Youth Tobacco Use]===
*Currently, Congress is considering doubling the cigarette excise tax (to $2.01 per pack) and setting the ENDS tax to parity with the new cigarette tax (Durbin 2021). This tax, if adopted, would imply a roughly $2.01 tax per 0.7 fluid mL of nicotine, assuming a Juul pod is equivalent to a pack of cigarettes (Truth Initiative 2019), or $2.87 per fluid mL. Our MTF results suggest that this would reduce youth current ENDS use by 5.5 pp but raise current cigarette use by 3.7 pp, assuming that the cigarette tax portion of the bill has no effect as suggested by the small, statistically insignificant cigarette tax effects estimated in this paper, and other recent studies (Hansen, Sabia, and Rees 2017). The YRBSS results meanwhile suggest much larger reductions in youth current ENDS use, but a sizable increase in youth current cigarette use of 2.3 pp. If ENDS are substantially safer products as suggested by several major government-commissioned reviews (McNeill et al. 2018; National Academies of Sciences, Engineering, and Medicine 2018; UK Committee on Toxicity of Chemicals in Food, Consumer Products and the Environment 2020), our results suggest that the proposed bill may harm youth health in the United States
*[https://www.nber.org/system/files/working_papers/w29216/w29216.pdf PDF Version]
*Citation: Intended and Unintended Effects of E-cigarette Taxes on Youth Tobacco Use, Rahi Abouk, Charles J. Courtemanche, Dhaval M. Dave, Bo Feng, Abigail S. Friedman, Johanna Catherine Maclean, Michael F. Pesko, Joseph J. Sabia, and Samuel Safford, NBER Working Paper No. 29216, September 2021, JEL No. H2,I1,I18