Cent Eur J Public Health 2009, 17(2):93-98 | DOI: 10.21101/cejph.a3518

The Impact of Cigarette Taxes and Advertising on the Demand for Cigarettes in Ukraine

Limin Peng1, Hana Ross2
1 Department of Biostatistics and Bioinformatics, Rollins School of Public Health, Emory University, USA
2 Epidemiology and Surveillance Research, American Cancer Society, USA

Background: Cigarette consumption in Ukraine is increasing while the cigarettes are becoming more affordable due to low taxes and raising income. The impact of cigarette prices and taxes on cigarette consumption is unclear due to the limited research evidence using the local data. This study estimates the sensitivity of Ukraine population to cigarette prices and the affordability of cigarettes using the macro level data in order to predict the effectiveness of cigarette tax policy.

Methods: Monthly time-series data available from 1997 to 2006 in Ukraine were used to estimate the generalized least square model with an AR(1) process to investigate the impact of cigarette price/tax, household income, the affordability of cigarettes and the volume of tobacco advertising on Ukraine domestic cigarette sales while controlling for other factors.

Results: Our analyses demonstrate a strong positive association between cigarette sales and household income as well as a strong positive association between cigarette sales and tobacco advertising activity. The population is found to have relatively low sensitivity to cigarette prices and cigarette taxes, but the impact of cigarettes' affordability is statistically significant, even though also of low magnitude.

Conclusion: We speculate that the lower sensitivity to cigarette prices among Ukraine population is caused by wide price variation allowing smokers to avoid a price increase by brand substitution as well as by low costs of cigarettes, high social acceptance of smoking and limited effort to control tobacco use in Ukraine. Narrowing the cigarette price choices and increasing cigarette prices above the level of inflation and income growth by adopting the appropriate tax policy would likely increase the effectiveness of this tool for controlling the smoking rate in Ukraine as well as yield additional budget revenue gains. In addition, imposing advertising restriction may further help reducing the smoking prevalence.

Klíčová slova: Ukraine tobacco control, cigarette demand, cigarette tax policy

Vloženo: 24. září 2008; Revidováno: 23. únor 2009; Přijato: 23. únor 2009; Zveřejněno: 1. červen 2009  Zobrazit citaci

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Peng L, Ross H. The Impact of Cigarette Taxes and Advertising on the Demand for Cigarettes in Ukraine. Cent Eur J Public Health. 2009;17(2):93-98. doi: 10.21101/cejph.a3518. PubMed PMID: 19662827.
Sdílet...
Stáhnout citaci
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Zobrazit celý článek

    Reference

    1. World Health Organization. The World Health Report 2002: reducing risks, promoting healthy life. Geneva: WHO; 2002.
    2. Euromonitor International [homepage on the Internet]. Tobacco in Ukraine [cited 2008 Sep 24]. Available from: http://www.euromonitor.com/Tobacco_in_Ukraine.
    3. Peto R, Lopez AD, Boreham J, Thun M. Mortality from smoking in developedcountries1950-2000.2ndedition[monographontheInternet].Geneva: International Union Against Cancer (UICC); 2006 [cited 2008 Sep 24]. Available from: http://www.deathsfromsmoking.net/countries.html.
    4. European Commission. Excise duty tables. Part III - manufactured tobacco. Brussels: Directorate General Taxation and Customs Union; 2005.
    5. Saffer H. Tobacco advertising and promotion. In: Jha P, Chaloupka FJ, editors. Tobacco control in developing countries. Oxford: Oxford University Press; 2000. p. 215-36.
    6. ERC Statistics International plc. The world cigarettes. Market: the 2004 survey. Suffolk (UK): ERC; 2004.
    7. Gallet CA, List JA. Cigarette demand: a meta-analysis of elasticities. Health Econ. 2003 Oct;12(10):821-35. Přejít k původnímu zdroji... Přejít na PubMed...
    8. Wasserman J, Manning WG, Newhouse JP, Winkler JD. The effects of excise taxes and regulations on cigarette smoking. J Health Econ. 1991 May;10(1):43-64. Přejít k původnímu zdroji... Přejít na PubMed...
    9. Chaloupka FJ, Hu T, Warner KE, Jacobs R, Yurekli A. The taxation of tobacco products. In: Jha P, Chaloupka FJ, editors. Tobacco control in developing countries. Oxford: Oxford University Press; 2000. p. 237-72.
    10. Da Costa e Silva VL. The Brazilian cigarette industry: prospects for consumption reduction. In: Abedian I, et al, editors. The economics of tobacco control: towards an optimal policy mix. Cape Town: Applied Fiscal Research Centre, University of Cape Town; 1998. p. 129-45.
    11. Djutaharta T, Surya HV, Pasay NHA, Hendratno, Adioetomo SM. Aggregate analysis of the impact of cigarette tax rate increases on tobacco consumption and government revenue: the case of Indonesia. Health, nutrition and population (HNP) discussion paper. Economics of tobacco control paper no. 25. Washington, DC: World Bank; 2005.
    12. Arunatilake N. An economic analysis of tobacco demand in Sri Lanka. Sri Lanka Econ J. 2002;3(1):96-120.
    13. Lance PM, Akin JS, Dow WH, Loh CP. Is cigarette smoking in poorer nations highly sensitive to price? Evidence from Russia and China. J Health Econ. 2004 Jan;23(1):173-89. Přejít k původnímu zdroji... Přejít na PubMed...
    14. Ross H. The Ukraine (Kiev) 1999 global youth tobacco survey: economic issues.Health,nutritionandpopulation(HNP)discussionpaper.Economics of tobacco control paper no. 20. Washington, DC: World Bank; 2004.

    Zpět na obsah