Does a Kuznets curve exist for tobacco consumption? Evidence from OECD countries

ABSTRACT

Using data from 27 OCDE countries from 1990 to 2021, the purpose of this article is to study empirically if the Kuznets’ curve hypothesis exists on economic development and health, measuring the latter through tobacco consumption. We examine the relationship between tobacco consumption and income, the Gini coefficient, life expectancy, unemployment rate, and the population’s age structure to analyse the research question given the relevance to economic development and costs of tobacco use. We hypothesize that tobacco consumption increases as income levels increase until a certain tipping point, after which tobacco consumption would start to fall. We provide evidence for the existence of a Kuznets Curve for tobacco consumption. Our results also verify that inequality, unemployment rates and life expectancy increase tobacco consumption, although increases in the youth and the elderly population reduce tobacco use.

KEYWORDS:

• Tobacco consumption
• Kuznets curve
• economic development
• income
• health

JEL CLASSIFICATION:

• I10
• I18
• O10

Disclosure statement

No potential conflict of interest was reported by the authors.

Supplementary material

Supplemental data for this article can be accessed online at https://doi.org/10.1080/13504851.2023.2211331.