Obesity, Smoking, and Cigarette Taxes: Evidence from the Canadian Community Health Surveys

Posted: 12 Jul 2016

See all articles by Mahdiyeh Entezarkheir

Mahdiyeh Entezarkheir

University of Western Ontario - Huron University College

Anindya Sen

University of Waterloo

Alan Wilson

University of Waterloo

Date Written: July 11, 2016

Abstract

Objectives: Recent studies suggest an ambiguous relationship between obesity and cigarette taxes. We employ Canadian data to evaluate the effects of cigarette taxes on smoking and obesity.

Methods: We use a simple reduced form approach and exploit the significant cross-province differences that exist between Eastern and Western Canada to estimate the effects of higher cigarette taxes using aggregate health region and individual level data from the 2003 and 2005 waves of the Canadian Community Health Surveys (CCHS).

Results: OLS estimates based on health regions data suggest that a 10% increase in cigarette taxes is significantly correlated with a 4–5% increase in the percentage of obese population. We also find cigarette tax elasticities of between −0.2 and −0.4 with respect to then percentage of smokers. Estimates from individual level data are similar.

Conclusions: In tandem, these results offer support to the possibility that health benefits from higher cigarette taxes and lower smoking, might be partially offset by a corresponding increase in obesity levels.

Keywords: Obesity, Smoking, Cigarette taxes

Suggested Citation

Entezarkheir, Mahdiyeh and Sen, Anindya and Wilson, Alan, Obesity, Smoking, and Cigarette Taxes: Evidence from the Canadian Community Health Surveys (July 11, 2016). Available at SSRN: https://ssrn.com/abstract=2808127

Mahdiyeh Entezarkheir (Contact Author)

University of Western Ontario - Huron University College ( email )

1349 Western Road
London, Ontario N6G1H3
Canada

Anindya Sen

University of Waterloo ( email )

Waterloo, Ontario N2L 3G1
Canada

Alan Wilson

University of Waterloo

Waterloo, Ontario N2L 3G1
Canada

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