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The Effect of Price Increase on Tobacco Consumption  

Kim, Won-Nyon (고려대학교 경제학과)
Suh, Jung-Ha (청주대학교 경영학과)
Kim, Yang-Jung (고려대학교 일반대학원 경제정책학과)
Publication Information
Korea journal of population studies / v.29, no.2, 2006 , pp. 195-213 More about this Journal
Abstract
Follow-up surveys with 700 smoking male adults and 300 nonsmoking male adults were performed before 20-days and after one month, three months and six months since government's price increase enforcement. 572 smokers among 700 and 198 non-smokers among 300 were remained and followed up till the end of the surveys. The cessation rate of smokers are 6.6%(after one month), 10.3%(after three months) and 11.0%(after six months). Smoking cessation ratio of new smoking quilters who considered that price increase as a motive of their giving-up smoking are 76.3%, 81.3% and 65.1%. The smokers estimates of short-run price elasticities from follow-up surveys are -0.6853, -0.6230 and -0.5482 at each survey period. Including non-smokers, estimates of short-run price elasticities from follow-up surveys are -0.3920, -0.3739 and -0.3481 at each survey period. The effect of demand decrease caused by KR\500 price increase stayed with little difference for six months because price elasticities between each survey period showed no much change. Effectiveness and validity of tobacco control by price increase was confirmed through the survey results. Therefore if the government want to attain long term strategic goal to decrease general smoking rate among male adult smokers by 30%, the strong smoking prohibition policy, just like the price increase of December 2004, should be continuously driven.
Keywords
tobacco Price; tobacco consumption; price elasticity;
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Times Cited By KSCI : 1  (Citation Analysis)
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