Economic Impact of Tobacco Price Increases Through Taxation: A Community Guide Systematic Review

Community Preventive Services Task Force

Research output: Contribution to journalArticle

Abstract

Context Tobacco use is a leading cause of preventable death in the U.S. and around the world. Increasing tobacco price through higher taxes is an effective intervention both to reduce tobacco use in the population and generate government revenues. The goal of this paper is to review evidence on the economic impact of tobacco price increases through taxation with a focus on the likely healthcare cost savings and improvements in employee productivity. Evidence acquisition The search covered studies published in English from January 2000 to July 2012 and included evaluations of national, state, and local policies to increase the price of any type of tobacco product by raising taxes in high-income countries. Economic review methods developed for The Guide to Community Preventive Services were used to screen and abstract included studies. Economic impact estimates were standardized to summarize the available evidence. Analyses were conducted in 2012. Evidence synthesis The review included eight modeling studies, with seven providing estimates of the impact on healthcare costs and three providing estimates of the value of productivity gains. Only one study provided an estimate of intervention costs. The economic merit of tobacco product price increases through taxation was determined from the overall body of evidence on per capita annual cost savings from a conservative 20% price increase. Conclusions The evidence indicates that interventions that raise the unit price of tobacco products through taxes generate substantial healthcare cost savings and can generate additional gains from improved productivity in the workplace.

Original languageEnglish (US)
Pages (from-to)800-808
Number of pages9
JournalAmerican Journal of Preventive Medicine
Volume49
Issue number5
DOIs
StatePublished - Nov 1 2015
Externally publishedYes

Fingerprint

Taxes
Tobacco
Economics
Cost Savings
Tobacco Products
Health Care Costs
Tobacco Use
Social Welfare
Workplace
Cause of Death
Costs and Cost Analysis
Population

ASJC Scopus subject areas

  • Public Health, Environmental and Occupational Health
  • Epidemiology

Cite this

Economic Impact of Tobacco Price Increases Through Taxation : A Community Guide Systematic Review. / Community Preventive Services Task Force.

In: American Journal of Preventive Medicine, Vol. 49, No. 5, 01.11.2015, p. 800-808.

Research output: Contribution to journalArticle

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