title: The cross-effects of cigarette and betel nut consumption in Taiwan: have tax increases made a difference?
abstract: 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.
authors.affiliation: Department of Finance, Nan Hua University, Dalin, Chiayi, Taiwan.
authors.forename: Sheng-Hung
authors.initials: SH
authors.lastname: Chen
authors.forename: Jie-Min
authors.initials: JM
authors.lastname: Lee
authors.forename: Hsiang-Hsi
authors.initials: HH
authors.lastname: Liu
authors.forename: Hui-Cheng
authors.initials: HC
authors.lastname: Wang
authors.forename: Chun-Yuan
authors.initials: CY
authors.lastname: Ye
mesh_terms: 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*