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 |
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.