The distributional impact of tobacco excise increases
Publication Source

South African Journal of Economics

Journal article
Metadata
Region
Africa
Economy status
Upper-middle-income economies
Download Link
Paid subscription article
Abstract

It is generally recognised that, of all tobacco control instruments available, rapidly increasing excise taxes are by far the most effective in reducing cigarette consumption (World Bank, 1999; Jha and Chaloupka, 2000). Despite its addictiveness, the price elasticity of cigarette demand is estimated at around -0.4 for most developed countries and between -0.4 and -0.8 for developing countries (Chaloupka and Warner, 1999; Jha and Chaloupka, 2000). South Africa’s cigarette price elasticity is estimated to lie in the developing country range (Reekie, 1994; Van Walbeek, 1996 and 2000 a; and Van der Merwe and Annett, 1998).