• Cigarette tax policy
The establishment of a cigarette tax policy would contribute to the reduction of cigarette consumption, because the equilibrium price of the market would increase and considering the consumer's budget constraint, the quantity demanded would decrease. In this sense, the demand model is optimal to represent the establishment of this policy and the reduction of cigarette consumption as a consequence. Because this model specifies the demand equation so that the quantity of cigarettes demanded is a function of cigarette prices, consumer income, and tax policies.
In this sense, it is assumed that the consumers has a rational behavior, and due to their budgets constrains will decrease the purchase of cigarettes, without considering
Electronic cigarettes, also known as e-cigs or vape pens are so often negatively looked upon as sources of addiction, rather than the health cigarette substitute they really are. E-cigarettes allow the delivery of nicotine to the blood without the nasty side effects caused by tars and carcinogens in traditional cigarettes. The electronic cigarette was patented by Herbert A. Gilbert in 1963, who lived in a society where smoking was generally accepted or even the norm but he saw the dangers of smoking tobacco and was one of the first to try to innovate alternate intake methods. 40 years later Han Lik, a chinese businessman, began to further expand on Herbert A. Gilberts idea of delivery of nicotine without the plethora of harmful chemicals in a lit cigarette. An electronic cigarette is a battery powered device often designed to look like a regular cigarette, inside the e-cig is an atomizer which heats up a liquid containing nicotine. When heated up the liquid becomes a vapor that can be inhaled, similar to cigarette smoke.
"Use of e-cigarettes has grown quickly in the last decade, with U.S. sales expected to reach $4.1 billion in 2016." Electronic cigarettes are substitutes to cigarettes. As the price of one good increases, the quantity demanded of that good, and thus the quantity demanded of the substitute good would increase. This is evident on the graph below. As the tax causes a price increase from P1 to P2,the quantity demanded of e-cigarettes also increases from Q1 to Q2. Cigarettes and e-cigarettes would therefore have a positive cross-price elasticity of demand which would be small in the short term but large in the long term. It is extremely difficult for people to switch any addictive habit. However, over the long term, citizens would have time to adapt and switch to electronic
even though the author of this article talks in particular about excise taxes, this initiative will eventually affect the buyer because they will have to pay more for the this products they are consuming. In class, we have a discussion on sales taxes and the incidence of tax. Even though cigarette distributers are required by law to pay this tax, the consumers of cigarettes are going to end up paying more for the increase of taxes. Therefore, this article is also related to the legal and economic incidence of a
E-Cigarettes are battery-powered vaporizers that simulate the feeling of smoking, but without tobacco. Their use is commonly called vaping. Instead of cigarettes smoke, the user inhales an aerosol. Commonly called vapor, typically released by a heating element that atomizes a liquid solution known as a e-liquid, the user activates the e-cigarette by taking a puff or pressing a button.
The 2016 November election brought many unexpected outcomes. One in particular that a local project of the Pueblo City-County Health Department was expecting funding from: Amendment 72, the tobacco tax.
The research design is appropriate for answering the research question, which was determining the consequences and perspectives from patients and health care providers on the new policies mandating smoke-free hospital properties. The research design is appropriate because ethnographic research is based on studying patterns of behaviour within a culture. This study was based on studying patterns of behaviours on smoking-policies but the study mostly aimed to gain perspectives from a variety of individuals. Ethnographic method is great for the study in the fact that it can be used to include behavioural and cognitive perspectives, which in this case the study focused on observing behaviours of smoking and if the policies were being followed and also included the perspectives on the new smoke-free policies. Also ethnographic research usually focuses on studying one culture. This study did try to focus on one specific culture, but the population had “diversity” consisting of smokers and non-smokers. The culture that was viewed in the study was tobacco use and management.
Have you ever thought that smokers are slowly killing themselves. My mom has been smoking for years and she has been trying to quit but it's hard and that's the reason I'm writing about this.I will be writing about the reasons why I hate smoking and why smokers pay health tax for smoking on top of the normal taxes of buying smokes and how much that tax will be.I personally think the health tax should be $.50 for every dollar you spend on smokes that pays for health care for hospitals so they can buy the equipment they need to run the place. The tax in your town or city will go toward your hospital in your city and if you're a small town it will go to the closest major hospital and now I will talk about the bad things that come from smoking. People who smoke should pay a health tax because it's super cheap, they're super addictive and the are really bad for your lungs.
Department of Health & Human Services 2000 report by the Surgeon General. Increasing the price of a pack of cigarettes by ten percent has been shown to reduce smoking rates by an average of 4.8 percent (a mean price elasticity of -0.48) as more smokers quit and fewer potential smokers start. This effect is greatest among youth and low income consumers, who are particularly sensitive to price. However, inelastic goods, such as tobacco, have fewer substitutes and a price change will not have a significant influence on the quantity demanded. In the long run, time may be the greater influece as it moves the elasticity of cigarettes to one that is more elastic, if the smoker finds he can no longer afford the $2 per pack and eventually begins to kick the
Social Regulation applies to the regulation on tobacco. Basically social regulation are aimed at such important social goals as protecting consumers and the environment and providing workers with safe and healthy working conditions. In the discussion President Obama provided a new law the Food and Drug Administration (FDA) with power not only to forbid advertising geared toward children but also to regulate what is in cigarettes. President Obama used social regulation protecting consumers (which are the kids and smokers) by creating regulations on tobacco products.
The government in my country passed a law making cigarettes illegal would have numerous results. First, it would cause many people to lose their jobs because of the collapse of the cigarette factories. People who lose jobs will become poor and it will led to country has a lot of stress because the government need to spend great efforts to help these poor people. We all know that the size of cigarette factories is very large and cigarette factories are very influential because it can develop the local economy. Also, the government lets cigarette productions become illegal will cause the country’s economic development in a bad tendency due to cigarette factories are spread all over the
When government reduces tobacco use and post calories counts on restaurant menus, it will reduce consumer pleasure. When government limits quantity of tobacco use, consumers can only buy fewer quantity of tobacco. It will decrease consumer satisfaction. Regulation will lose consumer surplus which means pleasure lose by someone who curtails an enjoyable behaviour. If consumers quantify satisfaction as dollar value, consumer wills suffer lost enjoyment amounting billions of dollars. Furthermore, decrease in consumer surplus can be represented as decrease in quality of life. It would be hard for smokers to quit smoking right away. Moreover, a lot of consumers would get stress every time as they select food in restaurant. With lack
Demand, "shows the various amounts of product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time." (48). Since we know that demand is the amount of a product consumers are willing to purchase we can develop a strategy on cigarettes, that will make the product more difficult for the consumer to buy it. In our organization I feel we should write letters to many government officials and force a increase of taxes of cigarettes. Price plays a major role on the demand for cigarettes because many people will not be able to afford it. Research states that more people with low income smoke rather then higher income people, so with the increase of price on cigarettes it will directly affect the demand because people will eventually have no option, but to quit smoking.
Health economics can be used also prospectively together with the programmer or individually to inspect the influence of health promotion and health promotion procedures. For example, independent examination of the influence of a strategy can be used to measure the effect of tax changes on smoking behavior between unalike social groups. review the likely influence of an increase in the excise tax amount on cigarettes on the number of adolescent smokers, telling that a 23% rise in the price of cigarettes would result in a discount of 16% in the number of adolescents who would then smoke, and a decrease in the number of cigarettes smoked by adolescents of 14% ( December 1,
There are many cities who have implemented bans on cigarettes, but China overall is still the leading consumer of cigarettes in the world. A countrywide tax on cigarettes has been proposed to their Ministry of Finance, and Ministry of Economics and Trade, but a decision has yet to be made. Tobacco production provides substantial revenue to the government and a tax increase will have a significant effect on the central government and reduction of consumption of cigarettes. According to a study done by the group proposing the tax, “a 25% tax increase will have an overall monetary benefit that far exceeds the negative impact on the cigarette industry and tobacco farmers. In financial terms alone, not counting the number of lives saved and medical care cost savings, the gain of the central government tax revenue (24.58 billion Yuan) twice exceeds the loss of tobacco farmers’ earnings, tobacco industry workers’ earning and loss of industry and local government revenue (11.74 billion Yuan)” (Hu TW 107). There many components to this calculation, but some factors included the reduction of cigarette consumption, the number of lives saved, savings in medical care costs, gains in productivity due to avoidance of premature death, industry revenue lost, lost jobs in cigarette industry, loss of tobacco income, and loss of local government
The magnitude of the off-set would determine the overall impact of the cigarette taxes on the health outcome. However, if a person’s only concern is weight management, then a reduction in exercises due to reduced cigarette consumption would both have negative effects on weight management and hence reduce person’s health. One shortcoming of the theoretical framework is, its assumption that exercises yield disutility to the person. In other words, it is assumed that persons dislike exercising and only exercises for its beneficial effects on health. This assumption seems unrealistic since it is very probable that people gain utility from exercising itself. If this assumption is relaxed, it is possible that people will not off-set the reduction in cigarette consumption by a reduction in exercise, which would then have a positive effect on the overall health function.