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Article
Will Plain Packaging Reduce Cigarette Consumption?
Economic Papers (2012)
  • Harry Clarke, La Trobe University
  • David Prentice, La Trobe University
Abstract
The Australian Parliament has passed legislation compelling tobacco products to be sold in “plain packaging”. This paper reviews this legislation and its likely effects on prices, market structure in the tobacco industry and on smoking behaviour. Industry changes following two previous sets of restrictions on advertising are examined for relevant empirical evidence. Without offsetting tax increases the legislation will plausibly reduce prices but significant entry into the industry and greater consumption of counterfeit/illegal cigarettes are unlikely. Provided that tax increases offset any induced fall in prices, plain packaging will reduce cigarette consumption.
Keywords
  • Cigarettes,
  • Plain Packaging
Disciplines
Publication Date
2012
Citation Information
Harry Clarke and David Prentice. "Will Plain Packaging Reduce Cigarette Consumption?" Economic Papers Vol. 31 Iss. 3 (2012)
Available at: http://works.bepress.com/david_prentice/3/