Some Aspects of the Demand for and Supply of Tobacco Products Concerning Teenagers

Abstract

This paper examines some determinants of the demand for tobacco products among teenagers. Some important factors include income, habit, social images and health information. However, the results suggest that the real price of tobacco products is the main determinant of such demand. Evidence on the influence of tobacco product advertising and tobacco product advertising bans is mixed. Since tobacco product is price elastic for teenagers there is discussion on the role of increased tobacco taxation (hence increased tobacco product prices) at both the Federal and State level in Australia as meeting the requirements of a sumptuary tax. As well, other avenues for reducing teenager smoking participation rates such as restricting supply and availability are discussed as part of a comprehensive anti-smoking campaign.