Type of Publication: Article in Journal

How effective are pictorial warnings on tobacco products? New evidence on smoking behaviour using Australian panel data

Author(s):

Kuehnle, Daniel

Title of Journal:

Journal of Health Economics

Volume (Publication Date):

2019 (2019)

Number of Issue:

67

Digital Object Identifier (DOI):

doi:10.1016/j.jhealeco.2019.06.002

Citation:

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Abstract

Studies examining the introduction of pictorial warnings on cigarette packages provide inconclusive evidence due to small samples and methodological issues. We use individual-level panel data from Australia to examine the association between pictorial warnings and smoking behaviour – prevalence, quitting, initiating and relapsing. The pictorial warnings were accompanied by a reference to a smoking cessation helpline and supportive television commercials. Applying an event study framework, we show that the reform reduced smoking rates by around 4% within the first year of the policy. The effect decreases with age, is similar for men and women, and is slightly larger for low-educated compared to high-educated individuals. The reform permanently lowered smoking rates primarily due to increased quitting in the year of the reform. Thus, pictorial warnings combined with a reference to a smoking cessation helpline and supportive media campaigns are an important tobacco control measure to reduce the social costs of smoking.