Posted on: 24.09.2021 Posted by: impacteen Comments: 0
(Last Updated On: 07.04.2023)

Research Papers

The Economic Impact of State Cigarette Taxes and Smoke-free Air Policies on
Convenience Stores

Huang J, Chaloupka FJ

This study investigates the economic impact of state cigarette taxes and smoke-free air policies
on convenience stores. Specifically, we examine whether increasing cigarette taxes and/or
enacting stronger smoke-free air policies will reduce number of convenience stores per capita in
a state. Our analyses show that the number of convenience stores is positively correlated with
state cigarette taxes. One explanation for this comes from studies that find cigarette taxes
are over-shifted, leading to larger increases in consumer prices than the tax increase, which could
potentially increase profits at the retail level. In addition, we found smoke-free air policies do not
have negative impacts on convenience stores. Our results are robust across different model specifications and exclusion/inclusion of other tobacco control policies. Additionally, our results
are robust with regard to a broad definition of convenience stores which includes gas stations.

(PDF – 1.45 MB)