Skip to main content
. 2021 Dec 15;19:97. doi: 10.18332/tid/143179

Table 3.

Own price elasticity, consumption and affordability of tobacco products

Study number Study ID a First Author a Year Country Product Authors’ conclusions Measure of outcome Relationship between price and consumption/affordability Quality
1 2 Nargis 2019 Bangladesh Cigarettes and bidis Few externalities undermined the effectiveness of tax and prices, thereby increasing cigarette consumption in Bangladesh Consumption Positive High
2 3 Hussain 2017 Thailand Cigarettes Overall, no change in national affordability of cigarettes Consumption and affordability No High
3* 4 Blecher 2004 Sri Lanka, Thailand, Bangladesh, India, Indonesia Cigarettes The average annual percentage change in RIP (%) of cigarettes from 1990–2001: i) Sri Lanka: Decrease, ii) Thailand: Increase, iii) Bangladesh: Decrease, iv) India: Decrease, v) Indonesia: Increase Affordability Unclear High
4 5 Shang 2018 India Cigarettes and bidis The cigarette prices were significantly associated with lower hazards of smoking onset**.
Higher bidi prices were significantly associated with a lower hazard of bidi smoking onset**.
Consumption Inverse High
5 7 Kostova 2015 India Smokeless tobacco Higher ST prices were found to reduce ST use at the intensive margin. Consumption Inverse Moderate
6 8 White 2015 Thailand Cigarettes Although 50.1% of all smokers decreased consumption. The marginal effects of cigarette prices on consumption (price elasticity) were small and of the wrong sign for two of four models. It did not alter the intensity of continuing smokers. Consumption Contradictory statements within the study, hence unclear High
7 11 John 2008 India Cigarettes, bidis and leaf tobacco The proportionate increases in price lead to slightly less than proportionate reductions in consumption in the case of bidis and leaf tobacco, while leading to much less proportionate reductions in consumption in the case of cigarettes. Consumption Inverse High
8 14 Zheng 2018 Indonesia Cigarettes From 2002 to 2016, cigarette consumption steadily increased, in association with an increase in affordability. Consumption as well as affordability Positive High
9 20 Jha P 2012 Thailand and India Cigarettes Although mentioned that large taxes are an effective instrument in reducing the number of smokers but no clear-cut interpretations could be drawn on the impact of price on consumption. Consumption Unclear Moderate
10 22 Kengganpanich 2009 Thailand Cigarettes The cigarette consumption reduced after tax increase. Consumption Inverse High
11 24 Joseph 2013 India Cigarettes, bidis and gutka Based on the price elasticity estimates calculated in the study, higher tobacco prices can be an effective deterrent in participation among youth. Consumption Inverse High
12 26 Nargis 2014 Bangladesh Cigarettes Cigarette price leads to less than proportionate decrease in consumption. Consumption Inverse High
13 28 Nargis 2018 Bangladesh Cigarettes, bidis and smokeless tobacco The affordability of bidis and cigarettes increased while SLT remained unchanged. Affordability Positive for bidis and cigarettes; no for SLT High
14 29 John 2020 India Cigarettes, bidis and SLT The overall affordability of products has increased post GST. *** Consumption and affordability Unclear High
15 36 Huq 2018 Bangladesh Cigarettes While the top two tiers did not see any major shift but the consumption increased in low and medium tier. Consumption Positive High
16 37 Guindon 2019 India Cigarettes and bidis Bidis and cigarettes have become substantially affordable, despite the price increase. Affordability Positive High
17 39 Fernando 2019 Sri Lanka Any type Increasing the price of tobacco products has no significant impact on smoking behaviors. Consumption Positive Low
18 45 Shang 2017 India Cigarettes, bidis and dual Higher state cigarette VAT rates in India were significantly associated with lower smoking. Consumption Inverse High
19 46 Nargis 2014 Bangladesh SLT-zarda The price of zarda appears to influence the prevalence of zarda use negatively as expected. Consumption Inverse High
20 55 Arunatilake 2000 Sri Lanka Overall tobacco Based on the price elasticity estimates; price increases are effective in reducing tobacco consumption. Consumption Inverse High
21 66 John 2010 India Cigarettes, bidis and chewing All products have become more affordable (based on RIP computed for all the three types). Affordability Positive Moderate
22 67 Report 2014 Myanmar, Indonesia and Thailand Cigarettes No definite answer for Myanmar. Increased prevalence for cigarette smoking in Indonesia. While for Thailand as taxes increased, the prevalence decreased. Consumption Unclear Moderate
23 69 Adioetomo 2005 Indonesia Cigarettes Price increase will have effect on quantities of cigarettes consumed, based on the negative price elasticity estimates. Consumption Inverse High
24 70 Yurekli 2003 Nepal Cigarettes and bidis Negative price elasticity estimates; Increase in excise taxes would reduce consumption. Consumption Inverse High
25 71 Kyaing NN 2005 Myanmar Cigarettes, cheroots, SLT Based on the price elasticity estimates higher prices of tobacco products will lead to reduced consumption. Consumption Inverse High
26 72 Kyaing 2003 Myanmar All tobacco products Cigarette affordability did not change much but cheroots have become much more affordable. Affordability No as well positive Moderate
27 73 Djutaharta 2005 Indonesia Cigarettes Overall, the trend in cigarette consumption neither increased or decreased. Consumption No High
28 74 Goodchild 2020 India Cigarettes, bidis and chewing No significant change in affordability of bidis and cigarettes. While affordability of SLT has reduced significantly. Affordability No as well positive Moderate
a

The reference for each Study ID is given in the Supplementary file Table S9.

*

These interpretations were given in graphs and not explicitly stated by the authors. Hence, no clear inferences could be drawn for findings specific to WHO-SEAR countries.

**

In study 5, onset refers to a created dummy variable and pertains to start of tobacco use in the given year (coded as 1, and 0 for non-smokers).

***

The author does say that this is due to no increase in taxation within GST regime, unlike high VAT tax.

Note: Although affordability is expressed as RIP (%) in most of studies, increase in RIP means tobacco products become expensive, however for easy interpretation of results ‘direct’ relationship between price and affordability of products means that products have become more affordable despite the price increase.