Journal of Preventive Medicine and Public Health

The Korean Society for Preventive Medicine (대한예방의학회)
권호 표지

The Effect of Cigarette Price on Smoking Behavior in Korea

우리나라 성인 남성의 흡연여부와 흡연량에 미치는 담배가격의 효과

  • Chung, Woo-Jin (Graduate School of Public Health, Yonsei University) ;
  • Lee, Sun-Mi (Graduate School of Public Health, Yonsei University) ;
  • Choi, Sung-Joo (Graduate School of Public Health, Yonsei University) ;
  • Shin, Ka-Young (Graduate School of Public Health, Yonsei University) ;
  • Cho, Kyung-Sook (Office for Aging Society and Population Policy, Ministry of Health and Welfare) ;
  • Lim, Seung-Ji (Department of Public Health, Yonsei University Graduate School)
  • 정우진 (연세대학교 보건대학원) ;
  • 이선미 (연세대학교 보건대학원) ;
  • 최승주 (연세대학교 보건대학원) ;
  • 신가영 (연세대학교 보건대학원) ;
  • 조경숙 (보건복지부 저출산고령사회정책본부) ;
  • 임승지 (연세대학교 대학원 보건학과)
  • Published : 2007.09.30
Download PDF
⟨ Previous Next ⟩

Abstract

Objectives: To determine the impact of cigarette prices on the decision to initiate and quit smoking by taking into account the interdependence of smoking and other behavioral risk factors. Methods: The study population consisted of 3,000 male Koreans aged ${\ge}20$. A survey by telephone interview was undertaken to collect information on cigarette price, smoking and other behavioral risk factors. A two-part model was used to examine separately the effect of price on the decision to be a smoker, and on the amount of cigarettes smoked. Results: The overall price elasticity of cigarettes was estimated at -0.66, with a price elasticity of -0.02 for smoking participation and -0.64 for the amount of cigarettes consumed by smokers. The inclusion of other behavioral risk factors reduced the estimated price elasticity for smoking participation substantially, but had no effect on the conditional price elasticity for the quantity of cigarettes smoked. Conclusions: From the public health and financial perspectives, an increase in cigarette price would significantly reduce smoking prevalence as well as cigarette consumption by smokers in Korea.

Keywords

References

  1. Yoon SJ, Ha BM, Kang JW, Chang He. Estimation of attributable burden due to premature death from smoking in Korea. Korean J Prev Med 2001; 34(3): 191-199 (Korean)
  2. WHO. First Meeting of the Working Group on the WHO Framework Convention on Tobacco Control Provisional agenda item & A/FCTC/WGI/33 September. 1999, p.1-5
  3. Chaloupka FJ, Wechsler H. Price, tobacco control policies and smoking among young adults. J Health Econ 1997; 16(3): 359-373 https://doi.org/10.1016/S0167-6296(96)00530-9
  4. Hamilton WL, Norton G, Ouellette TK, Rhodes WM, Connollu GN. Smoker's responses to advertisements for regular and light cigarettes and potential reduced-exposure tobacco product. Nicotine Tab Res 2004; 6(Suppl 3): 353-362 https://doi.org/10.1080/14622200412331320752
  5. Sheu ML, Hu TW, Keeler TE, Onq M, Sung HY. The effect of a major cigarette price change on smoking behavior in California: A zero-inflated negative binomial model. Health Econ 2004; 13(8): 781-791 https://doi.org/10.1002/hec.849
  6. Townsend J, Roderick P, Cooper J. Cigarette smoking by socioeconomic group, sex, and age: Effects of price, income, and health publicity. BMJ 1994; 309(6959): 923-927 https://doi.org/10.1136/bmj.309.6959.923
  7. Foster M, Jones A. The Role of Tobacco Taxes in Starting and Quitting Smoking: Duration Analysis of British Data 2000. York: The University of York; 2000, p. 1-21
  8. Lance PM, Akin JS, Dow WH, Loh CP. Is cigarette smoking in poorer nations highly sensitive to price? Evidence from Russia and China. J Health Econ 2004; 23(1): 173-189 https://doi.org/10.1016/j.jhealeco.2003.09.004
  9. Laxminarayan R, Deolalikar A. Tobacco initiation, cessation, and change: Evidence from Vietnam. Health Econ 2004; 13(12): 1191-1201 https://doi.org/10.1002/hec.932
  10. Jha P, Chaloupka FJ. The economics of global tobacco control. BMJ 2000; 321(7257): 358-361 https://doi.org/10.1136/bmj.321.7257.358
  11. Gallet CA, List JA. Cigarette demand: A meta-analysis of elasticities. Health Econ 2003; 12(10): 821-835 https://doi.org/10.1002/hec.765
  12. Liang L, Chaloupka F, Nichter M, Clayton R. Prices, policies and youth smoking, May 2001. Addiction 2003; 98 (Suppl 1): 105-122 https://doi.org/10.1046/j.1360-0443.98.s1.7.x
  13. Jamrozik K. Population strategies to prevent smoking. BMJ2004; 328(7442): 759-762 https://doi.org/10.1136/bmj.328.7442.759
  14. Gallus S, Schiaffino A, Vecchia CL, Tounserd J, Fernard ZE. Price and cigarette consumption in Europe. Tob control 2006; 15(2): 114-119 https://doi.org/10.1136/tc.2005.012468
  15. Keeler TE, Hu TW, Barnett PG, Manning WG. Taxation, regulation, and addiction: A demand function for cigarettes based on time-series evidence. J Health Econ 1993; 12(1): 118
  16. Yurekli AA, Zhang P. The impact of clean indoor-air laws and cigarette smuggling on demand for cigarettes: An empirical model. Health Econ 2000; 9(2): 159-170 https://doi.org/10.1002/(SICI)1099-1050(200003)9:2<159::AID-HEC499>3.0.CO;2-T
  17. Pekurinen M. The demand for tobacco products in Finland. Br J Addict 1989; 84(10): 1183-1192 https://doi.org/10.1111/j.1360-0443.1989.tb00714.x
  18. Fernandez E, Gallus S, Schiaffino A, Lopez-Nicolas A, La Vecchia C, Barros H, Townsend J. Price and consumption of tobacco in Spain over the period 1965-2000. Eur J Cancer Prev 2004; 13(3): 207-211 https://doi.org/10.1097/01.cej.0000130018.93310.92
  19. Gallus S, Fernandez E, Townsend J, Schiaffino A, La Vecchia C. Price and consumption of tobacco in Italy over the last three decades. Eur J Cancer Prev 2003; 12(4): 333-337 https://doi.org/10.1097/00008469-200308000-00015
  20. Lee JM, Liao DS, Ye CY, Liao WZ. Effect of cigarette tax increase on cigarette consumption in Taiwan. Tob Control 2005; 14(Suppl 1): i71-75 https://doi.org/10.1136/tc.2004.008177
  21. Hu TW, Mao Z. Effects of cigarette tax on cigarette consumption and the Chinese economy. Tob Control 2002; 11 (2): 105-108 https://doi.org/10.1136/tc.11.2.105
  22. Townsend J. Price and consumption of tobacco. Br Med Bull 1996; 52(1): 132-142 https://doi.org/10.1093/oxfordjournals.bmb.a011521
  23. Scollo M, Younie S, Wakefield M, Freeman J, Icasiano F. Impact of tobacco tax reforms on tobacco prices and tobacco use in Australia. Tob Control 2003; 12(Suppl 2): ii59-66
  24. Hu TW, Ren QF, Keeler TE, Bartlett J. The demand for cigarettes in California and behavioural risk factors. Health Econ 1995; 4(1): 7-14 https://doi.org/10.1002/hec.4730040102
  25. Kim SJ. Searching for an effective government policy on cigarette consumption: Estimating demand for cigarettes in South Korea. Korean Asso Public Admin 2002; 36(3): 167-184 (Korean)
  26. Kim YI, Kang KH, Lee KS, Hwang SH. An Increase in Cigarette Price and Resource Allocation. Ministry of Health and Welfare; 2003, p. 70-82 (Korean)
  27. Kim WN, Lee JS, Kim YJ, Chung SM, Lee SH. A Study of the Effectiveness of Tobacco Control Policy. Ministry of Health and Welfare; 2005, p. 39-79 (Korean)
  28. Kim WN. An estimation of the price elasticity for tobacco demand. Popul Assoc Korea 2004; 27(1): 81-90 (Korean)
  29. The California Department of Health Services, Tobacco Control Section. Adult Smoking. [cited 2006 Mar 5]. Available from:URL :http://www.dhs.cagov/tobacco/documents/pubs/AdultSmoking.pdf
  30. WHO. International Guide for Monitoring Alcohol Consumption and Related Harm. Geneva: WHO; 2000, p. 19-73
  31. Lewit ML, Coate D. The potential for using excise taxes to reduce smoking. J Health Econ 1982;1(2): 121-145 https://doi.org/10.1016/0167-6296(82)90011-X
  32. Wasserman J, Manning WG, Newhouse JP, Winkler JD. The effects of excise taxes and regulation on cigarette smoking. J Health Econ 1991; 10(1): 43-64 https://doi.org/10.1016/0167-6296(91)90016-G
  33. Douglas S, Hariharan G. The hazard of starting smoking estimates from a split population duration model. J Health Econ 1994; 13(2): 213-230 https://doi.org/10.1016/0167-6296(94)90024-8
  34. Remington PL, Forman MR, Gentry EM, Marks JS, Hogelin GC, Trowbridge FL. Current smoking trend in the United States. JAMA 1985; 253(20): 2975-2978 https://doi.org/10.1001/jama.253.20.2975
  35. Manning WG, Morris CN, Newhouse JP. A Two-Part Model of the Demand for Medical Care: Preliminary Results from the Health Insurance Study. In: van der Gaag J, Perlman M, Editors. Helath, Economics, and Helath Economics. Amsterdam: North-Holland Publishing Company; 1981, p.103-123
  36. Jones AM A double-hurdle model of cigarette consumption. J Applied Econ 1989; 4(1): 23-39 https://doi.org/10.1002/jae.3950040103
  37. Ross H, Chaloupka FJ. The effect of cigarette price on youth smoking. Health Econ 2003; 12(3): 217-230 https://doi.org/10.1002/hec.709
  38. Greene WH. Econometric Analysis. New Jersey: Prentice-Hall; 2003, p. 780-790
  39. Farrelly MC, Bray JW, Zarkin GA, Wendling BW. The joint demand for cigarettes and marijuana: Evidence from the National Household Surveys on Drug Abuse. J Health Econ 2001; 20(1): 51-68 https://doi.org/10.1016/S0167-6296(00)00067-9
  40. Korean association of smoking & Health. The prevalence of adult smoking in South Korea 2005. [cited 2007 Jun 5]. Available from: URL:http://www.kash.or.kr/nser_new/pds_view.asp