Combustible cigarettes cost less to use than e-cigarettes: global evidence and tax policy implications

• Published in: Tobacco control Vol. 26; no. 2; pp. 158 - 163
• Main Authors: Liber, Alex C, Drope, Jeffrey M, Stoklosa, Michal
• Format: Journal Article
• Language: English
• Published: England BMJ Publishing Group 01.03.2017; BMJ Publishing Group LTD
• Subjects: Cigarettes; Commerce - economics; Commerce - statistics & numerical data; Electronic cigarettes; Electronic Nicotine Delivery Systems - economics; Electronic Nicotine Delivery Systems - statistics & numerical data; Excise taxes; Humans; Low income groups; Nicotine; Payback periods; Prices; Public health; Purchasing; Smoking - economics; Tax rates; Taxation; Taxes - economics; Taxes - statistics & numerical data; Tobacco; Tobacco Products - economics; Tobacco Products - statistics & numerical data; Vaping - economics; Economics; Electronic nicotine delivery devices; Taxation; Public policy
• ISSN: 0964-4563; 1468-3318
• DOI: 10.1136/tobaccocontrol-2015-052874

BackgroundSome scholars suggest that price differences between combustible cigarettes and e-cigarettes could be effective in moving current combustible smokers to e-cigarettes, which could reduce tobacco-related death and disease. Currently, in most jurisdictions, e-cigarettes are not subject to the same excise taxes as combustible cigarettes, potentially providing the category with a price advantage over combustible cigarettes. This paper tests whether e-cigarettes tax advantage has translated into a price advantage.MethodsIn a sample of 45 countries, the price of combustible cigarettes, disposable e-cigarettes and rechargeable cigarettes were compared.ResultsComparable units of combustible cigarettes cost less than disposable e-cigarettes in almost every country in the sample. While the e-liquids consumed in rechargeable e-cigarettes might cost less per comparable unit than combustible cigarettes, the initial cost to purchase a rechargeable e-cigarette presents a significant cost barrier to switching from smoking to vaping.DiscussionExisting prices of e-cigarettes are generally much higher than of combustible cigarettes. If policymakers wish to tax e-cigarettes less than combustibles, forceful policy action—almost certainly through excise taxation—must raise the price of combustible cigarettes beyond the price of using e-cigarettes.