A new study by Ball State says that by raising taxes on cigarettes, sales of e-cigarettes will fall even though they will not fall under the same tax.
About 15 percent of the US population has a smoking habit after the CDC. For a better number, that's 37.8 million people who regularly buy cigarettes. When a ball-state study tracked household purchases for nearly 100,000 households over 4 years, they saw some trends among smokers that could have been told without the study.
"As cigarette taxes increase, households reduce their cigarette purchases" Associate Professor Erik Nesson said:
If it costs more, you buy less. But there were also things that resulted in the study that you would not expect.
In today's world, there are alternatives to cigarettes, if you really need a solution, but this study found that when cigarette sales drop, things like e-cigarettes even if not covered by the same higher tax are.
"This suggests that cigarettes and e-cigarettes are more economic supplements than economic substitutes," said Nesson.
The reason This can only be because cigarettes are the more popular form of nicotine intake.
"People could reduce their nicotine consumption," Nesson said. "So they could just stop smoking so many cigarettes and then, because they do not consume so much nicotine, they also reduce their consumption of e-cigarettes and that seems to be."
The study says this policy focused on e-cigarette laws probably not smokers so much, but by putting pressure on cigarettes taxes, the smoking rate in America should fall.
"Cigarette taxes are certainly a very effective way to reduce cigarette consumption," said Nesson. "I would say that they are probably the most effective way to reduce cigarette consumption."
That does not mean that taxes will rise in the foreseeable future, Nesson says he wants politicians to understand the relationship between cigarettes and electronic cigarettes. If you look at the smoking laws, you can look at the cigarettes.
For a complete overview of the study, you can visit https://www.sciencedirect.com/science/article/abs/pii/S01