The effects of pnice policy on smoking and drinking

Abstract

□ 담배가격인상 및 주류가격인상에 따른 효과 분석 ○ 주류 품목(맥주, 소주, 양주, 전통주 등)별 주류의 가격탄력성 분석 ○ 담배가격 인상에 따른 가격탄력성 분석 ○ 담배소비와 주류소비의 교차탄력성 분석 ○ 담배 및 주류 가격인상에 따른 소득역진성 분석

In order to promote population health, consumptions of health risk products such as tobacco and alcohol should be decreased. However, steady declines of real prices of tobacco and liquor could not impact on the demand of those products, from which we can not expect to reduce the burden on our society. This study examines people's perceptions on tax policy which leads to increases in prices of tobacco and liquor and analyses the value for quitting smoking and moderating drinking by the method of Contingent Valuation Method. The main results are as follows. First, smokers would quit smoking if the price of cigarettes around 8,900won. The quitting smoking intent price is higher for higher income class than low income class. It could be expected for low income class be responded more sensitively than high income class when raising cigarettes price. Second, willingness to pay for smoking cessation treatment was given about 70,000won, which means smokers are willing to accept 30% copayment. Third, Respondents gives 2 times more value of societal influence than that of his/her own health.