Higher prices for vaping products effectively reduced use without driving adults toward traditional cigarettes.
RT’s Three Key Takeaways:
- Price Sensitivity: Higher taxes and pre-tax prices on e-cigarettes lead to a decrease in both the number of units purchased and the total amount of nicotine consumed by adults.
- Smoking Stability: The analysis found no statistically significant evidence that increasing the cost of e-cigarettes causes adult users to switch to traditional combustible cigarettes.
- Tiered Tax Strategy: Because adult vapers often switch between different device types like pods and tanks, researchers suggest that policymakers consider tiered tax designs to better manage nicotine consumption.
Higher e-cigarette taxes effectively reduce vaping rates among adults without unintentionally driving them toward traditional cigarette smoking, according to a study published in Health Economics.
The national analysis was conducted by the Center for Tobacco Research at the Ohio State University cancer center and involved a survey of 700 adults in the US who had used e-cigarettes within the past 30 days. Study participants made hypothetical monthly purchases across seven product categories, including disposable e-cigarettes, pod devices, tank devices, e-liquids, and cigarettes.
The study found that higher pre-tax base prices and higher taxes both reduced e-cigarette use, measured by product units purchased and the total amount of nicotine consumed. To reflect real-world conditions, the experiment used three price levels. Compared with lower prices, mid-range prices were linked to approximately 30% to 33% fewer product units purchased, while the highest prices were linked to approximately 49% to 51% fewer products purchased.
“Our findings suggest that increasing e-cigarette prices can effectively reduce vaping without the unintended consequence of more smoking among adult vapers,” said Shaoying Ma, PhD, first author of the study and research scientist at the Center for Tobacco Research, in a news release.
While different e-cigarette types often act as substitutes—where a price increase in one leads to the purchase of another—the researchers noted that combustible cigarettes did not see a significant increase in consumption. However, the study did find that certain products function as complements, such as tank devices and e-liquids, which are typically used together.
“Because adult vapers navigate a complex marketplace of disposables, pods, and tanks, a one-size-fits-all tax may not be sufficient to reduce nicotine consumption. Policymakers may consider tiered tax designs to achieve specific public health goals,” said Ma, first author of the study and research scientist, in a news release.
The Center for Tobacco Research is one of 14 Tobacco Centers of Regulatory Science (TCORS) tasked by the Food and Drug Administration (FDA) and National Institutes of Health (NIH) to conduct research that informs the regulation of tobacco products and supports broader healthcare initiatives.
