• Title/Summary/Keyword: tobacco consumption tax

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Analysis of the Effect of Cigarette Price Hike (담배가격인상 효과분석)

  • Kim Do-Hoon;Han Kwang-Hwan
    • Journal of the Korean Society of Tobacco Science
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    • v.27 no.2
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    • pp.235-243
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    • 2005
  • The government continuously increases cigarette price to reduce the smoking rates. Opinions of cigarette makers and Ministry of Health and Welfare on the effect of cigarette price hike are sharply opposed. This dispute is important because there is possibility of additional increase of cigarette price by 500 won. Therefore, as an inquiry into existing studies for the effect of cigarette price hike on tobacco product, namely analysis of the effect of cigarette price hike consumption, we empirically analyzed the effect of cigarette excise tax hike through establishing improved analytic models considering time trend. As a result, it is substantiated that time trend in the effect of cigarette excise tax hike is certainly exist and early impact is heavy. However, the amount of cigarette consumption is recovered to the level of the average in 5 months. Since it is proved that the long term effect of cigarette price hike is immaterial, health authority should reconsider the plan of additional raising cigarette price by 500 won.

An Estimation of the Pyiee Elasticities of Tobacco and Health Demand of Korean Urban Households using Macro and Micro Level Data (한국 도시가구의 담배소비와 보건의료지출: 가구 특성을 감안한 수요체계적 분석에 의한 가격탄력성 추정시도)

  • 김원년;이충열
    • Korea journal of population studies
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    • v.25 no.1
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    • pp.257-289
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    • 2002
  • In this study we analyse how the tobacco prices have an effect on the national health. The level of tobacco price will fluctuate its consumers demand and eventually affect the national health status. We estimate tobacco consumption function as well as households'demand system in which tobacco and health expenditure functions are included. Demand elasticities are estimated and evaluated in order to find future policies to improve the national health by controlling the national tobacco consumption There are two econometric approaches app1ied in this study. The lent tobacco demand analysis method is mm tobacco consumption function model. Using national indices of tobacco price, tobacco consumption and other related variables, tobacco consumption function is estimated. The other is micro demand system analysis by using Korean urban households expenditure data during the period of 1991 to 1999. The own price elasticity which is estimated from national tobacco demand per capita is -0.19 for all people and -0.176 for the adults over 18, which means 100% price increase will cause decease of tobacco demand at 19% and 17.6% per each The cross vice elasticity which is estimated between tobacco and health expenditure of urban households demand system is -0.2328, which implies 100% of tobacco price increase will decrease 23.28% of health expenditure. The low price elasticities imply that tobacco price increase will increase total tobacco sales volume. 100% of tobacco price increase will bring about 79% increase of total tobacco sales volume according to our scenario. Korea's tobacco demand is negatively responsive to fluctuations in its price. The health expenditure is also negatively relatedto the tobacco price fluctuation. These empirical outputs could be utilized as the basis of government's tax policy to control national tobacco consumption in the future.

Current Status of National Health Promotion Fund in Korea (국민건강증진기금 현황)

  • Kim, Juyeong;Lee, Joo Eun;Park, Eun-Cheol
    • Health Policy and Management
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    • v.27 no.4
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    • pp.366-371
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    • 2017
  • The National Health Promotion Fund has grown as the increase of tax on tobacco consumption, but more than half of the fund was spent on health insurance supporting. It is important to use the fund appropriately to keep legitimacy and sustainability of health promotion. Therefore, services regarding health promotion should be a priority in spending health promotion fund, and operation system should be established to manage and administer the fund properly.

A Study on Effect of Tobacco on Operation of Retail Store and Relevant Direction of Development (담배가 소매점 운영에 미치는 영향과 발전방향에 관한 연구)

  • Choi, Jong-Am;Kim, Hun-Yong;Kim, Dea-Sik
    • Journal of the Korean Society of Tobacco Science
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    • v.29 no.1
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    • pp.41-51
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    • 2007
  • This study was implemented to examine the effect of tobacco on operation of a retail store and propose a relevant direction to development of a retail store. In terms of an examination method, the questionnaire was conducted in respect of supermarkets and convenience stores(CVS) around the nation. As a result of analysis based on such questionnaire, although there was a little difference in between a supermarket and a convenience store, a similar result could be found in general. In other words, retailers selling tobacco regarded the tobacco as a medium to solicit customers. Since the significance of tobacco in terms of total sales volume was so high, without the tobacco, they might have suspend the business. Consequently, the effect of tobacco was enormous. In addition, under the premise that many regular customers should be acquired to develop such retail stores, it was found that it would be necessary to increase $15{\sim}20%$ in terms of a margin in tobacco, preserve the profit ratio by the government, make efforts to enhance a quality and design by a tobacco company, actively recommend a particular brand, and actively display a tobacco publicity booklet, etc. Moreover, the proper number of tobacco stores in comparison with habitual smokers was one per 200 persons. In respect of the most unreasonable tobacco policy, a minor-related system and a policy of increasing a tobacco price were named. Thus, under the premise that a medium such as tobacco is highly important with respect to an operation of retail store, it is necessary to pay a more careful attention to an improvement of a reasonable and equitable system to further develop a retail store.