Economist Says E-Cigarette Taxes May Boost Cigarette Sales

On March 15, news reported that a study co-authored by Catherine Maclean, an economics professor at Temple University, suggests that increasing taxes on vaping products may boost cigarette sales.

Maclean, along with five other researchers, analyzed the impact of e-cigarette taxes on their prices and sales, as well as the sales of other tobacco products in eight states and two large counties. They found that when the prices of vaping products rise, consumers tend to buy fewer e-cigarettes and more cigarettes.

Maclean stated, "In the context of economic substitutes, this is a well-established fact in economics. Essentially, consumers view e-cigarettes as an alternative source of nicotine."

Maclean noted that lawmakers may not be aware of the potential impact these increases could have on cigarette sales and consumption. "I think they are considering e-cigarette products in isolation. For example, policymakers want to reduce e-cigarette use, so they decide to tax the products without considering the potential [impact] on smoking outcomes."