Measuring the effect of policy on the demand for menthol cigarettes : evidence from household level purchase data

Abstract

I use detailed household-level data to investigate the potential impact of a ban on menthol cigarettes on smoking when compared to intervention policies such as taxes and public smoking restrictions. The results show that menthols are less addictive than non-menthols, and that demand for menthol cigarettes is less price sensitive. Public smoking restrictions are unsuccessful in reducing menthol smoking, though they do reduce non-menthol consumption. Additionally, higher prices do not increase the likelihood of quitting for menthol smokers. These findings indicate that current policies are ineffective in curbing menthol smoking, and a complete ban might be required.