Differential Responsiveness to Cigarette Prices by U.S. Adults Who Do and Do Not Use Cannabis

Cigarettes and cannabis are commonly co-used, but little research has examined how cannabis use relates to cigarette price responsiveness. This study compares the price elasticity of cigarette demand between U.S. adults who currently use cannabis and those who do not.

We analyzed cross-sectional data from the National Survey on Drug Use and Health (2004-2019; annual mean unweighted n = 50 000 adults aged 18+). A two-part econometric model of cigarette demand was estimated separately for adults who currently use cannabis and those who do not, including a multivariable logistic regression for smoking participation and a multivariable linear regression for smoking intensity.

From 2004 to 2019, smoking prevalence declined from 24.5% to 16.6%, while cannabis use increased from 5.8% to 11.6%, and co-use rose from 3.6% to 4.5%. Among cannabis users, price elasticity was statistically significant at -0.20 for smoking participation, -0.27 for smoking intensity, and -0.47 for total demand-indicating that a 1% increase in cigarette prices is associated with a 0.20%, 0.27%, and 0.47% decrease in smoking participation, smoking intensity and overall cigarette demand. Among non-cannabis users, price elasticity was also statistically significant at -0.23, -0.13, and -0.36. Those who currently use cannabis were significantly more price-responsive in reducing smoking participation and smoking intensity than those who do not.

Higher cigarette prices are associated with lower smoking prevalence, intensity, and total demand for both subgroups. However, adult smokers who currently use cannabis are more price-sensitive, suggesting that tobacco taxes may be particularly effective in reducing smoking among this subgroup.

Both cannabis-using and non-cannabis-using smokers are significantly responsive to cigarette prices, with higher prices associated with in lower levels of smoking initiation and smoking intensity as well as a higher quit rate. However, the cannabis-using smokers are significantly more price-responsive than non-cannabis-using smokers. These results suggest that increasing cigarette prices, such as through taxation, is effective in reducing cigarette smoking among U.S. adults, especially those who currently use cannabis.