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Use this link to read the full article chalak et al 2021_DCE
ABSTRACT
Background Waterpipe tobacco smoking rates in the
Eastern Mediterranean region are among the highest
worldwide, yet little evidence exists on its economics.
Estimates of demand elasticities for tobacco products are
largely limited to cigarettes. This study aimed to estimate
own-price
and cross-price
elasticities of demand for
cigarettes and waterpipe tobacco products in Lebanon,
Jordan and Palestine.
Methods
A volumetric choice experiment was
conducted using nationally representative household
surveys. The choice experiment elicited respondents’
stated purchases of eight cigarette and waterpipe
tobacco product varieties by hypothetically varying prices.
Data were analysed using zero-inflated
Poisson models
that yielded demand elasticity estimates of cigarette and
waterpipe tobacco consumption.
Results
The study included 1680 participants in
Lebanon (50% female), 1925 in Jordan (44.6%
female) and 1679 in Palestine (50% female). We
found the demand for premium cigarettes to be price
elastic (range, −1.0 to −1.2) across all three countries,
whereas the demand for discount cigarettes was less
elastic than premium cigarettes in Lebanon (−0.6) and
Jordan (−0.7) and more elastic in Palestine (−1.2). The
demand for premium waterpipe tobacco was highly
elastic in Lebanon (−1.9), moderately elastic in Jordan
(−0.6) and inelastic in Palestine (0.2). The cross-price
elasticity between cigarettes and waterpipe tobacco
was near zero, suggesting that the two products are not
considered to be close substitutes by consumers.
Conclusions
These results serve as a strong evidence
base for developing and implementing fiscal policies for
tobacco control in the Eastern Mediterranean region that
address cigarettes and waterpipe tobacco products.
