The cross-effects of cigarette and betel nut consumption in Taiwan: have tax increases made a difference?
This paper empirically identifies cross-price elasticities of betel nut and cigarette consumption in Taiwan based on the Central Bureau of Statistics demand model. It compares reduction of cigarette consumption as a result of the proposed Betel Nut Health Tax with reduction of betel nut consumption as a result of the Tobacco Health and Welfare Taxes levied in 2002 and 2006, in order to determine which tax is most effective. Results from a simulated comparative analysis indicate that the Betel Nut Health Tax reduces cigarette consumption to a much greater extent than the Tobacco Health and Welfare Taxes reduce betel nut consumption.
Chen
Sheng-Hung
SH
Department of Finance, Nan Hua University, Dalin, Chiayi, Taiwan.
Lee
Jie-Min
JM
Liu
Hsiang-Hsi
HH
Wang
Hui-Cheng
HC
Ye
Chun-Yuan
CY
D001114:Areca; D005260:Female; D006306:Health Surveys; D006801:Humans; D008297:Male; D012907:Smoking / Q000191:economics* / Q000453:epidemiology; D000074606:Smoking Prevention; D013624:Taiwan / Q000453:epidemiology; D013660:Taxes / Q000191:economics / Q000639:trends*