The 13th World Conference on Tobacco OR Health

Objective:

This research aimed to measure the effect of the latest pricing policy, raising the price of a pack of cigarettes by 500 won or almost 48 cents in US dollars in December 2004 and the price elasticity of the adolescent tobacco demand.

Methods:

We surveyed 15,310 teenage students attending middle schools and high from June 1st to 15th, 2005. This was a self-fulfilling type of survey which was managed by the health education teacher of each school. Multipart Model is used for evauating the price elasticity.

Results:

As a result of the price increase, of all smoking adolescents, it was turned out that 11.7% quit smoking and 20.5% reduced their tobacco consumption. 32% of smoking adolescents shifted to cheaper tobacco brands.

The estimated price elasticity of adolescent tobacco demand was -1.56. Female students showed higher elasticity than male students: -1.90 vs. -1.34. When we considered only those who were affected by the increased price of tobacco, the estimated price elasticity was -1.23. The estimated price elasticity of adolescent tobacco demand was four times as high as that of adults(-0.39)

After the price increase, the following groups reduced their tobacco consumption more significantly than the other groups: those who were middle school students(or young), who had negative attitudes toward smoking, who were medium smokers - smoking five to nine cigarettes a day, and who had smoked for a relatively shorter period. The spendable allowance did not affect tobacco consumption.