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Related Experiment Videos

Cigarette purchasing behaviors when prices are high.

Andrew Hyland1, Cheryl Higbee, Joseph E Bauer

  • 1Department of Health Behavior, Division of Cancer Prevention and Population Sciences, Roswell Park Cancer Institute, Buffalo, NY 14263, USA. andrew.hyland@roswellpark.org

Journal of Public Health Management and Practice : JPHMP
|January 12, 2005
PubMed
Summary
This summary is machine-generated.

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Smokers in Erie and Niagara Counties are buying cheaper, untaxed cigarettes from Indian reservations after excise tax increases. This behavior may reduce public health benefits and government revenue.

Area of Science:

  • Public Health
  • Health Economics
  • Tobacco Control

Background:

  • State excise taxes on cigarettes are a public health tool to reduce smoking.
  • Tax increases can alter smoker purchasing behaviors and cigarette sourcing.

Purpose of the Study:

  • To evaluate cigarette purchase patterns among smokers in Erie and Niagara Counties after a state excise tax increase.
  • To determine the impact of tax-induced price changes on cigarette sourcing and consumption.

Main Methods:

  • Telephone interviews were conducted with 1,548 randomly selected individuals in Erie and Niagara Counties.
  • Purchase patterns were analyzed for 908 smokers, focusing on usual cigarette sources and prices paid.
  • Data collection occurred between October 2002 and March 2003.

Related Experiment Videos

Main Results:

  • 67% of surveyed smokers reported purchasing cigarettes from Indian reservations, compared to 33% from stores.
  • The average price per pack was significantly lower on Indian reservations ($1.91) versus stores ($4.80).
  • Only one smoker reported the internet as a usual source for cigarettes.

Conclusions:

  • Smokers are shifting purchases to less expensive, untaxed cigarettes from Indian reservations.
  • This purchasing behavior may undermine the intended public health benefits of cigarette excise taxes.
  • Lost tax revenue for state and local governments is a potential consequence.