Own-price and cross-price elasticities of demand for cigarettes and waterpipe tobacco in three Eastern Mediterranean countries: a volumetric choice experiment

BackgroundWaterpipe tobacco smoking rates in the Eastern Mediterranean region are among the highest worldwide, yet little evidence exists on its economics. Estimates of demand elasticities for tobacco products are largely limited to cigarettes. This study aimed to estimate own-price and cross-price...

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Published inTobacco control Vol. 32; no. 1; pp. 86 - 92
Main Authors Chalak, Ali, Nakkash, Rima, Abu-Rmeileh, Niveen M E, Khader, Yousef S, Jawad, Mohammed, Mostafa, Aya, Abla, Ruba, Louviere, Jordan, Salloum, Ramzi G
Format Journal Article
LanguageEnglish
Published England BMJ Publishing Group Ltd 01.01.2023
BMJ Publishing Group LTD
BMJ Publishing Group
Subjects
Ad valorem taxes
American dollar
Cigarettes
Commerce
economics
Education
Elasticity
Elasticity of demand
Estimates
Excise taxes
Experiments
Female
Females
Fiscal policy
global health
Government revenue
Households
Humans
low/middle income country
Male
non-cigarette tobacco products
Original Research
Polls & surveys
Price elasticity
Questionnaires
Smoking
Smoking Water Pipes
Taxation
Taxes
Tobacco
Tobacco Products
Tobacco smoking
Tobacco, Waterpipe
Value added
Water pipes
Lebanon
United States > US
global health
non-cigarette tobacco products
economics
low/middle income country
taxation
Online AccessGet full text

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Abstract BackgroundWaterpipe tobacco smoking rates in the Eastern Mediterranean region are among the highest worldwide, yet little evidence exists on its economics. Estimates of demand elasticities for tobacco products are largely limited to cigarettes. This study aimed to estimate own-price and cross-price elasticities of demand for cigarettes and waterpipe tobacco products in Lebanon, Jordan and Palestine.MethodsA volumetric choice experiment was conducted using nationally representative household surveys. The choice experiment elicited respondents’ stated purchases of eight cigarette and waterpipe tobacco product varieties by hypothetically varying prices. Data were analysed using zero-inflated Poisson models that yielded demand elasticity estimates of cigarette and waterpipe tobacco consumption.ResultsThe study included 1680 participants in Lebanon (50% female), 1925 in Jordan (44.6% female) and 1679 in Palestine (50% female). We found the demand for premium cigarettes to be price elastic (range, −1.0 to −1.2) across all three countries, whereas the demand for discount cigarettes was less elastic than premium cigarettes in Lebanon (−0.6) and Jordan (−0.7) and more elastic in Palestine (−1.2). The demand for premium waterpipe tobacco was highly elastic in Lebanon (−1.9), moderately elastic in Jordan (−0.6) and inelastic in Palestine (0.2). The cross-price elasticity between cigarettes and waterpipe tobacco was near zero, suggesting that the two products are not considered to be close substitutes by consumers.ConclusionsThese results serve as a strong evidence base for developing and implementing fiscal policies for tobacco control in the Eastern Mediterranean region that address cigarettes and waterpipe tobacco products.
AbstractList BackgroundWaterpipe tobacco smoking rates in the Eastern Mediterranean region are among the highest worldwide, yet little evidence exists on its economics. Estimates of demand elasticities for tobacco products are largely limited to cigarettes. This study aimed to estimate own-price and cross-price elasticities of demand for cigarettes and waterpipe tobacco products in Lebanon, Jordan and Palestine.MethodsA volumetric choice experiment was conducted using nationally representative household surveys. The choice experiment elicited respondents’ stated purchases of eight cigarette and waterpipe tobacco product varieties by hypothetically varying prices. Data were analysed using zero-inflated Poisson models that yielded demand elasticity estimates of cigarette and waterpipe tobacco consumption.ResultsThe study included 1680 participants in Lebanon (50% female), 1925 in Jordan (44.6% female) and 1679 in Palestine (50% female). We found the demand for premium cigarettes to be price elastic (range, −1.0 to −1.2) across all three countries, whereas the demand for discount cigarettes was less elastic than premium cigarettes in Lebanon (−0.6) and Jordan (−0.7) and more elastic in Palestine (−1.2). The demand for premium waterpipe tobacco was highly elastic in Lebanon (−1.9), moderately elastic in Jordan (−0.6) and inelastic in Palestine (0.2). The cross-price elasticity between cigarettes and waterpipe tobacco was near zero, suggesting that the two products are not considered to be close substitutes by consumers.ConclusionsThese results serve as a strong evidence base for developing and implementing fiscal policies for tobacco control in the Eastern Mediterranean region that address cigarettes and waterpipe tobacco products.
Waterpipe tobacco smoking rates in the Eastern Mediterranean region are among the highest worldwide, yet little evidence exists on its economics. Estimates of demand elasticities for tobacco products are largely limited to cigarettes. This study aimed to estimate own-price and cross-price elasticities of demand for cigarettes and waterpipe tobacco products in Lebanon, Jordan and Palestine. A volumetric choice experiment was conducted using nationally representative household surveys. The choice experiment elicited respondents' stated purchases of eight cigarette and waterpipe tobacco product varieties by hypothetically varying prices. Data were analysed using zero-inflated Poisson models that yielded demand elasticity estimates of cigarette and waterpipe tobacco consumption. The study included 1680 participants in Lebanon (50% female), 1925 in Jordan (44.6% female) and 1679 in Palestine (50% female). We found the demand for premium cigarettes to be price elastic (range, -1.0 to -1.2) across all three countries, whereas the demand for discount cigarettes was less elastic than premium cigarettes in Lebanon (-0.6) and Jordan (-0.7) and more elastic in Palestine (-1.2). The demand for premium waterpipe tobacco was highly elastic in Lebanon (-1.9), moderately elastic in Jordan (-0.6) and inelastic in Palestine (0.2). The cross-price elasticity between cigarettes and waterpipe tobacco was near zero, suggesting that the two products are not considered to be close substitutes by consumers. These results serve as a strong evidence base for developing and implementing fiscal policies for tobacco control in the Eastern Mediterranean region that address cigarettes and waterpipe tobacco products.
Background Waterpipe tobacco smoking rates in the Eastern Mediterranean region are among the highest worldwide, yet little evidence exists on its economics. Estimates of demand elasticities for tobacco products are largely limited to cigarettes. This study aimed to estimate own-price and cross-price elasticities of demand for cigarettes and waterpipe tobacco products in Lebanon, Jordan and Palestine. Methods A volumetric choice experiment was conducted using nationally representative household surveys. The choice experiment elicited respondents’ stated purchases of eight cigarette and waterpipe tobacco product varieties by hypothetically varying prices. Data were analysed using zero-inflated Poisson models that yielded demand elasticity estimates of cigarette and waterpipe tobacco consumption. Results The study included 1680 participants in Lebanon (50% female), 1925 in Jordan (44.6% female) and 1679 in Palestine (50% female). We found the demand for premium cigarettes to be price elastic (range, −1.0 to −1.2) across all three countries, whereas the demand for discount cigarettes was less elastic than premium cigarettes in Lebanon (−0.6) and Jordan (−0.7) and more elastic in Palestine (−1.2). The demand for premium waterpipe tobacco was highly elastic in Lebanon (−1.9), moderately elastic in Jordan (−0.6) and inelastic in Palestine (0.2). The cross-price elasticity between cigarettes and waterpipe tobacco was near zero, suggesting that the two products are not considered to be close substitutes by consumers. Conclusions These results serve as a strong evidence base for developing and implementing fiscal policies for tobacco control in the Eastern Mediterranean region that address cigarettes and waterpipe tobacco products.
Author Khader, Yousef S
Jawad, Mohammed
Abu-Rmeileh, Niveen M E
Nakkash, Rima
Salloum, Ramzi G
Louviere, Jordan
Mostafa, Aya
Chalak, Ali
Abla, Ruba
AuthorAffiliation 4 Department of Community Medicine, Public Health and Family Medicine, Faculty of Medicine , Jordan University of Science and Technology , Irbid , Jordan
2 Department of Health Promotion and Community Health, Faculty of Health Sciences , American University of Beirut , Beirut , Lebanon
6 Department of Community, Environmental, and Occupational Medicine, Faculty of Medicine , Faculty of Medicine, Ain Shams University , Cairo , Egypt
8 Department of Health Outcomes and Biomedical Informatics, College of Medicine , University of Florida , Gainesville , Florida , USA
1 Department of Agriculture, Faculty of Agricultural and Food Sciences , American University of Beirut , Beirut , Lebanon
7 Choiceflows, LLC , Chapel Hill , North Carolina , USA
3 Institute of Community and Public Health , Birzeit University , Birzeit , Palestine
5 Public Health Policy Evaluation Unit , Imperial College London , London , UK
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Issue 1
Keywords global health
non-cigarette tobacco products
economics
low/middle income country
taxation
Language English
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PublicationTitle Tobacco control
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Sweis, Chaloupka 2014; 16 Suppl 1
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Siu, Chaloupka, Blecher 2020; 29
El-Awa, Bettcher, Al-Lawati 2020; 26
Salloum, Nakkash, Abu-Rmeileh 2019; 34
Salloum, Asfar, Maziak 2016; 106
Hyland, Ambrose, Conway 2017; 26
DeCicca, Kenkel 2015; 35
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Chalak, Ghandour, Anouti 2020; 35
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Louviere, Lancsar 2009; 4
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Akl, Ward, Bteddini 2015; 24 Suppl 1
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Snippet BackgroundWaterpipe tobacco smoking rates in the Eastern Mediterranean region are among the highest worldwide, yet little evidence exists on its economics....
Waterpipe tobacco smoking rates in the Eastern Mediterranean region are among the highest worldwide, yet little evidence exists on its economics. Estimates of...
Background Waterpipe tobacco smoking rates in the Eastern Mediterranean region are among the highest worldwide, yet little evidence exists on its economics....
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bmj
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Publisher
StartPage 86
SubjectTerms Ad valorem taxes
American dollar
Cigarettes
Commerce
economics
Education
Elasticity
Elasticity of demand
Estimates
Excise taxes
Experiments
Female
Females
Fiscal policy
global health
Government revenue
Households
Humans
low/middle income country
Male
non-cigarette tobacco products
Original Research
Polls & surveys
Price elasticity
Questionnaires
Smoking
Smoking Water Pipes
Taxation
Taxes
Tobacco
Tobacco Products
Tobacco smoking
Tobacco, Waterpipe
Value added
Water pipes
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Title Own-price and cross-price elasticities of demand for cigarettes and waterpipe tobacco in three Eastern Mediterranean countries: a volumetric choice experiment
URI http://dx.doi.org/10.1136/tobaccocontrol-2021-056616
https://www.ncbi.nlm.nih.gov/pubmed/34193608
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https://pubmed.ncbi.nlm.nih.gov/PMC9763177
Volume 32
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