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Price elasticity of demand for manufactured cigarettes and roll-your-own cigarettes across socioeconomic status groups in Thailand
  1. Jintana Jankhotkaew1,
  2. Siriwan Pitayarangsarit1,2,
  3. Surasak Chaiyasong1,3,
  4. Kamolphat Markchang1
  1. 1Health Promotion Policy Research Center, International Health Policy Program, Ministry of Public Health, Nonthaburi, Thailand
  2. 2Division of Non-Communicable Diseases, Department of Disease Control, Royal Thai Government Ministry of Public Health, Nonthaburi, Thailand
  3. 3Social Pharmacy Research Unit, Faculty of Pharmacy, Mahasarakham University, Maha Sarakham, Thailand
  1. Correspondence to Dr Surasak Chaiyasong, Social Pharmacy Research Unit, Faculty of Pharmacy, Mahasarakham University, Mahasarakham 44150, Thailand; surasak{at}ihpp.thaigov.net

Abstract

Background Pricing policies have been proven to be effective in reducing tobacco consumption. However, studies investigating the effectiveness of pricing policies across different types of tobacco products and socioeconomic status (SES) groups are limited, particularly in low-income and middle-income countries.

Objective This study aimed to quantify the price elasticity of demand for different types of cigarettes across different SES groups.

Methods This study used data from a nationally representative survey in Thailand conducted in 2017 and included current smokers aged at least 15 years. To quantify the price elasticity of demand for cigarette consumption, a two-part model was employed for five different types of cigarettes: domestic and imported manufactured cigarettes with a low and high price, and roll-your-own cigarettes. Personal income was used to determine SES.

Results Price elasticity of demand for cigarettes exists for all types of cigarettes. The price elasticity of demand for manufactured and roll-your-own cigarettes was −0.49 (p<0.05) and −0.32 (p<0.05), respectively. People who smoked domestic manufactured cigarettes were more responsive to price change than those who smoked imported manufactured cigarettes. Low-income smokers of manufactured and roll-your-own cigarettes were more responsive to price change than those with high income.

Conclusion Smokers with a low income were more responsive to price change than those with higher income. The effectiveness of pricing policy in reducing demand for manufactured cigarettes was greater in domestic cigarettes than imported ones.

  • hand-rolled/RYO tobacco
  • socioeconomic status
  • price
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Footnotes

  • Contributors JJ, SP and SC designed the study. Statistical analyses were done by JJ, SC and KM. Interpretation of findings, manuscript writing and critical revision were done by JJ, SP, SC and KM. Final approval of the submitted manuscript was done by JJ, SP, SC and KM.

  • Funding The authors have not declared a specific grant for this research from any funding agency in the public, commercial or not-for-profit sectors.

  • Competing interests None declared.

  • Patient consent for publication Not required.

  • Provenance and peer review Not commissioned; externally peer reviewed.

  • Data availability statement No data are available. Data are available on the request and approval from the Thai National Statistical Office.

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