The impact of prices and taxes on the use of tobacco products in Latin America and the Caribbean

Am J Public Health. 2015 Mar;105(3):e9-19. doi: 10.2105/AJPH.2014.302396. Epub 2015 Jan 20.

Abstract

We examined the impact of tobacco prices or taxes on tobacco use in Latin America and Caribbean countries. We searched MEDLINE, EconLit, LILACS, unpublished literature, 6 specialty journals, and reviewed references. We calculated pooled price elasticities using random-effects models. The 32 studies we examined found that cigarette prices have a negative and statistically significant effect on cigarette consumption. A change in price is associated with a less than proportional change in the quantity of cigarettes demanded. In most Latin American countries, own-price elasticity for cigarettes is likely below -0.5 (pooled elasticities, short-run: -0.31; 95% confidence interval=-0.39, -0.24; long-run: -0.43; 95% CI=-0.51, -0.35). Tax increases effectively reduce cigarette use. Lack of studies using household- or individual-level data limits research's policy relevance.

Publication types

  • Research Support, Non-U.S. Gov't
  • Review

MeSH terms

  • Caribbean Region / epidemiology
  • Commerce / economics
  • Databases, Bibliographic
  • Humans
  • Latin America / epidemiology
  • Smoking / economics*
  • Smoking / epidemiology
  • Smoking Prevention
  • Taxes / economics
  • Tobacco Products / economics*
  • Tobacco Products / statistics & numerical data