Differential responsiveness to cigarette price by education and income among adult urban Chinese smokers : findings from the ITC China Survey
Date
2015
Journal Title
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Volume Title
Publisher
BMJ
Abstract
Background Few studies have examined the impact of
tobacco tax and price policies in China. In addition, very
little is known about the differential responses to tax
and price increases based on socioeconomic status in
China.
Objective To estimate the conditional cigarette
consumption price elasticity among adult urban smokers
in China and to examine the differential responses to
cigarette price increases among groups with different
income and/or educational levels.
Methods Multivariate analyses employing the general
estimating equations method were conducted using the
first three waves of the International Tobacco Control
(ITC) China Survey. Analyses based on subsample by
education and income were conducted.
Findings Conditional cigarette demand price elasticity
ranges from −0.12 to −0.14. No differential responses
to cigarette price increase were found across education
levels. The price elasticity estimates do not differ
between high-income smokers and medium-income
smokers. Cigarette consumption among low-income
smokers did not decrease after a price increase, at least
among those who continued to smoke.
Conclusions Relative to other low-income and middleincome
countries, cigarette consumption among Chinese
adult smokers is not very sensitive to changes in
cigarette prices. The total impact of cigarette price
increase would be larger if its impact on smoking
initiation and cessation, as well as the price-reducing
behaviours such as brand switching and trading down,
were taken into account.
Description
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Journal Article (peer-reviewed)
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Keywords
TOBACCO INDUSTRY, TOBACCO CONTROL, SMOKING, INCOME, CONSUMPTION TAX, PRICING, ECONOMIC IMPLICATIONS, ECONOMETRIC ANALYSIS, ECONOMIC BEHAVIOUR
Citation
Huang, J., Zheng, R., Chaloupka, F.J., Fong, G.T., & Jiang, Y. (2015). Differential responsiveness to cigarette price by education and income among adult urban Chinese smokers: findings from the ITC China Survey. Tobacco Control, 24, iii76-iii82. doi:10.1136/tobaccocontrol-2014-052091