The impact of a federal cigarette minimum pack price policy on cigarette use in the USA. Issue 2 (4th March 2017)

• Record Type: Journal Article
• Authors: Doogan, Nathan J; Wewers, Mary Ellen; Berman, Micah
• Is Part Of: Tobacco control. Volume 27:Issue 2(2018)
• Page Start: 203
• Page End: 208
• Publication Date: 2017-03-04
• Subjects: Price -- Economics -- Advertising and Promotion; Tobacco use -- Prevention -- Periodicals; Tobacco use -- Periodicals; Smoking -- Law and legislation -- Periodicals; Smoking -- prevention & control -- Periodicals; Tobacco Use Disorder -- prevention & control -- Periodicals; Tobacco -- Periodicals; Electronic journals; 613.85
• DOI: 10.1136/tobaccocontrol-2016-053457
• Languages: English
• ISSNs: 0964-4563

Abstract

Abstract : Background: Increasing cigarette prices reduce cigarette use. The US Food and Drug Administration has the authority to regulate the sale and promotion—and therefore the price—of tobacco products. Objective: To examine the potential effect of federal minimum price regulation on the sales of cigarettes in the USA. Method: We used yearly state-level data from the Tax Burden on Tobacco and other sources to model per capita cigarette sales as a function of price. We used the fitted model to compare the status quo sales with counterfactual scenarios in which a federal minimum price was set. The minimum price scenarios ranged from $0 to $12. Results: The estimated price effect in our model was comparable with that found in the literature. Our counterfactual analyses suggested that the impact of a minimum price requirement could range from a minimal effect at the $4 level to a reduction of 5.7 billion packs sold per year and 10 million smokers at the $10 level. Conclusion: A federal minimum price policy has the potential to greatly benefit tobacco control and public health by uniformly increasing the price of cigarettes and by eliminating many price-reducing strategies currently available to both sellers and consumers.