When taxes on e-cigarettes and e-liquid are high, smoking increases. This is particularly true among young adults (18-25 years). This is according to a new study from Yale University.
"It is clear that young adults would rather choose to vejpa than to smoke, if the price of e-cigarettes is lower than cigarettes" says researcher Abigail Friedman.
Taxes are often used to reduce the use of e-cigarettes among young people. In several US states, but also in many EU countries, taxation of nicotine and e-liquid has become part of the control apparatus. But how do these taxes affect use? And what are the consequences in relation to competing nicotine products, such as cigarettes? Researchers at the Yale School of Public Health and Georgia State University wanted to find out.
"We were particularly interested in the effects of taxes among young adults aged 18 to 25. This is an important group, as it is usually at these ages that occasional nicotine use turns into regular use" says Abiagail Friedman, an assistant professor at the Yale School of Public Health, to the Yale News.
Fewer vejpade after tax increase
To find out the effect of the taxes, the researchers compared purchasing habits in states that had introduced taxes on e-liquid and those that had not. They found that the use of e-cigarettes decreased in relation to the level of taxation. If the price went up by the equivalent of SEK 10 per milliliter of e-liquid, use fell by 2.5 percentage points among young adults.
More young people smoking
At the same time, cigarette use increased by 3.7 percentage points in the same group. Compared to previous studies spanning all age groups, young adults who vejp were found to be three times more sensitive to tax increases than older vejp users.
"Young adults are very sensitive to price. However, when we look at statistics on nicotine habits, we rarely single out the 18-25 age group. This is problematic as this group has a much higher use of cigarettes than those who are older. The same is true for e-cigarettes" says Abigail Friedman
E-cigs and smoking are linked
The researchers also noted that the opposite was true when taxes on cigarettes were increased, without taxes on e-cigarettes being introduced. In these states, smoking declined by 2.5 percentage points, while vejpanding among young adults increased by the same amount.
Substitution in the market
According to Abigail Friedmanwho conducted the study together with economics researcher Michael Pesko, it is important to carry out a thorough public health analysis when taxes on e-cigarettes and nicotine are on the agenda.
"Our studies clearly show that this is about market substitution. People who buy nicotine products choose and switch between cigarettes or e-cigarettes. This is especially true for young adults", says Abigail Friedman.
Similar trend for taste bans
Previous studies have shown a similar connection between restrictions on e-cigarettes and increased use of traditional cigarettes among youth. At issue was the flavor ban - which led to more youth smoking in one San Francisco district compared to nearby districts where flavors remained allowed.
"Reasonable that the least dangerous is cheaper"
A further study published in 2021 highlighted the impact of taxes on e-liquid, but then across all age groups. Again, the results reflected a market where cigarette use increased significantly as e-cigarettes became more expensive.
"Legislators should be very aware of the impact of taxation on the habits of nicotine users. It should be reasonable that the least dangerous option is also the one that costs the least. In the case of e-cigarettes and cigarettes, it is clear that pricing plays a major role in nicotine users' choices. It is also clear that young adults are more sensitive to price differences than older users." says Abigail Friedman.
In the journal "Addiction"
The study was published in the journal "Addiction" and was funded by grants from the Robert Wood Johnson Foundation, the National Institute on Drug Abuse of the National Institutes of Health, and the University of Kentucky's Institute for the Study of Free Enterprise.
