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Estimating the price elasticity of demand for cigarettes in South Africa using the Deaton approach.
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- Author(s): Dare C;Dare C; Boachie MK; Boachie MK; Boachie MK; Tingum EN; Tingum EN; Abdullah SM; Abdullah SM; Abdullah SM; van Walbeek C; van Walbeek C
- Source:
BMJ open [BMJ Open] 2021 Dec 17; Vol. 11 (12), pp. e046279. Date of Electronic Publication: 2021 Dec 17.- Publication Type:
Journal Article; Research Support, Non-U.S. Gov't- Language:
English - Source:
- Additional Information
- Source: Publisher: BMJ Publishing Group Ltd Country of Publication: England NLM ID: 101552874 Publication Model: Electronic Cited Medium: Internet ISSN: 2044-6055 (Electronic) Linking ISSN: 20446055 NLM ISO Abbreviation: BMJ Open Subsets: MEDLINE
- Publication Information: Original Publication: [London] : BMJ Publishing Group Ltd, 2011-
- Subject Terms:
- Abstract: Objective: To estimate the price elasticity of demand for South Africa and thereby contribute to growing the evidence base of the likely impact of excise taxes on cigarette demand in low-income and middle-income countries.
Methods: We employ the Deaton method, using wave 5 data from the South African National Income Dynamics Study, to estimate the cigarette price elasticity for South Africa. We used a sample of 6820 households.
Results: Of the 6 820 households in the sample for which we had sufficient data, 1341 (19.7%) spent money on tobacco. The price elasticity of demand for cigarettes is estimated at -0.86 (95% CI -1.37 to -0.35), implying that the demand for cigarettes in South Africa declines by 8.6% for every 10% increase in price.
Conclusion: The negative price elasticity estimate for South Africa indicates that increases in the excise tax are particularly effective in controlling cigarette consumption. However, given the presence of a significant illicit tobacco market in the country, it is important that authorities augment tax measures with strategies that curb the illicit trade in cigarettes.
Competing Interests: Competing interests: None declared.
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Tob Control. 2020 Oct;29(Suppl 4):s234-s242. (PMID: 31383724) - Grant Information: MR/P027946/2 United Kingdom MRC_ Medical Research Council; C62640/A24723 United Kingdom CRUK_ Cancer Research UK
- Contributed Indexing: Keywords: health economics; health policy; health services administration & management; international health services; public health
- Publication Date: Date Created: 20211218 Date Completed: 20220222 Latest Revision: 20220222
- Publication Date: 20221213
- Accession Number: PMC8685941
- Accession Number: 10.1136/bmjopen-2020-046279
- Accession Number: 34921069
- Source:
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