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The effect of bans and taxes on passive smoking

Publication Source

Adda, J., Cornaglia, F. 2010

Publication Title

American Economic Journal: Applied Economics

Publication Type

Journal article

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Abstract

We evaluate the effect of smoking bans and excise taxes on the expo sure to tobacco smoke of nonsmokers, and we show their unintended consequences on children. Smoking bans perversely increase non smokers' exposure by displacing smokers to private places where they contaminate nonsmokers. We exploit data on bio-samples of cotinine, time use, and smoking cessation, as well as state and time variation in anti-smoking policies across US states. We find that higher taxes are an efficient way to decrease exposure to tobacco smoke.