ABSTRACT

This research aimed to measure the effect of the increase in tobacco price in Korea; changes in tobacco consumption patterns and the price elasticity of adolescent demand for tobacco. We investigated 14,692 teen-age students attending middle school or high school in July 2005. The increase in tobacco price in December 2004 has contributed to a reduction in adolescent smoking and a switch to cheaper tobacco brands. Of all smoking adolescents, 11.7 percent quitted smoking, 20.5 percent reduced their tobacco consumption, and 32.0 percent shifted to cheaper brands, following the price change. Even though some adolescents changed the brand after price increase, the reduction in smoking by brand changers was either bigger than or at least as big as that by non-brand changers. The estimated price elasticity of adolescent demand for tobacco was estimated to range between -1.15 and -1.56.

KEYWORD

Tobacco Price, Adolescent, Smoking Reduction, Brand Switching, Price Elasticity

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