Tobacco Taxation Incidence : Evidence from the Russian Federation
Despite the well-known positive effects of tobacco taxes on health outcomes, policy makers avoid relying on such taxes because of their possible regressive impact. Using an extended cost-benefit analysis to estimate the distributional effect of cig...
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/508191540824515851/Tobacco-Taxation-Incidence-Evidence-from-the-Russian-Federation http://hdl.handle.net/10986/30646 |
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okr-10986-306462021-06-08T14:42:48Z Tobacco Taxation Incidence : Evidence from the Russian Federation Fuchs, Alan Matytsin, Mikhail Obukhova, Olga TOBACCO TAX TOBACCO CONTROL DISTRIBUTIONAL IMPACT HEALTH OUTCOMES SMOKING TOBACCO PRICE PRICE ELASTICITY Despite the well-known positive effects of tobacco taxes on health outcomes, policy makers avoid relying on such taxes because of their possible regressive impact. Using an extended cost-benefit analysis to estimate the distributional effect of cigarettes in the Russian Federation, this paper finds that the long-run impact may in fact be progressive. The methodology applied incorporates the negative price effect caused by an increase in tobacco taxes, combined with a presumed future reduction in medical expenditures and a rise in working years caused by a reduction in the rate of smoking among the population. The analysis includes estimates of the distributional impacts of price rises on cigarettes under various scenarios, based on information taken from the Russia Longitudinal Monitoring Survey -- Higher School of Economics for 2010–16. One contribution is the quantification of impacts by allowing price elasticities to vary across consumption deciles. Overall, cigarette taxes exert a positive long-term effect on household incomes, although the magnitude depends on the structure of the conditional price elasticity. If the population is more responsive to tobacco price changes, then it would experience greater gains from the health and extended work-life benefits. 2018-11-01T18:25:52Z 2018-11-01T18:25:52Z 2018-10 Working Paper http://documents.worldbank.org/curated/en/508191540824515851/Tobacco-Taxation-Incidence-Evidence-from-the-Russian-Federation http://hdl.handle.net/10986/30646 English Policy Research Working Paper;No. 8626 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Russian Federation |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
TOBACCO TAX TOBACCO CONTROL DISTRIBUTIONAL IMPACT HEALTH OUTCOMES SMOKING TOBACCO PRICE PRICE ELASTICITY |
| spellingShingle |
TOBACCO TAX TOBACCO CONTROL DISTRIBUTIONAL IMPACT HEALTH OUTCOMES SMOKING TOBACCO PRICE PRICE ELASTICITY Fuchs, Alan Matytsin, Mikhail Obukhova, Olga Tobacco Taxation Incidence : Evidence from the Russian Federation |
| geographic_facet |
Europe and Central Asia Russian Federation |
| relation |
Policy Research Working Paper;No. 8626 |
| description |
Despite the well-known positive effects
of tobacco taxes on health outcomes, policy makers avoid
relying on such taxes because of their possible regressive
impact. Using an extended cost-benefit analysis to estimate
the distributional effect of cigarettes in the Russian
Federation, this paper finds that the long-run impact may in
fact be progressive. The methodology applied incorporates
the negative price effect caused by an increase in tobacco
taxes, combined with a presumed future reduction in medical
expenditures and a rise in working years caused by a
reduction in the rate of smoking among the population. The
analysis includes estimates of the distributional impacts of
price rises on cigarettes under various scenarios, based on
information taken from the Russia Longitudinal Monitoring
Survey -- Higher School of Economics for 2010–16. One
contribution is the quantification of impacts by allowing
price elasticities to vary across consumption deciles.
Overall, cigarette taxes exert a positive long-term effect
on household incomes, although the magnitude depends on the
structure of the conditional price elasticity. If the
population is more responsive to tobacco price changes, then
it would experience greater gains from the health and
extended work-life benefits. |
| format |
Working Paper |
| author |
Fuchs, Alan Matytsin, Mikhail Obukhova, Olga |
| author_facet |
Fuchs, Alan Matytsin, Mikhail Obukhova, Olga |
| author_sort |
Fuchs, Alan |
| title |
Tobacco Taxation Incidence : Evidence from the Russian Federation |
| title_short |
Tobacco Taxation Incidence : Evidence from the Russian Federation |
| title_full |
Tobacco Taxation Incidence : Evidence from the Russian Federation |
| title_fullStr |
Tobacco Taxation Incidence : Evidence from the Russian Federation |
| title_full_unstemmed |
Tobacco Taxation Incidence : Evidence from the Russian Federation |
| title_sort |
tobacco taxation incidence : evidence from the russian federation |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/508191540824515851/Tobacco-Taxation-Incidence-Evidence-from-the-Russian-Federation http://hdl.handle.net/10986/30646 |
| _version_ |
1764472521789276160 |