On anti-smoking regulations and tobacco consumption

Abstract

This study examines the effectiveness of regulations such as advertising bans for tobacco products and smoking bans in public places on the demand for cigarettes when the influence of social norms against smoking is also taken into account. Implementing comprehensive bans can change smoking norms and therefore have indirect impacts that persist over time. The paper uses panel data from OECD countries in the period of 1990 and 2004. The results suggest that comprehensive smoking bans in public places have persistent impacts on cigarette demand. A comprehensive ban immediately decreases smoking by 4.6%. The results also show that the indirect effect of a comprehensive ban decreases smoking by 1.2% for each year the comprehensive ban is in place.