COLUMBUS, Ohio – For years, a central debate in tobacco policy has been whether taxing e-cigarettes (ECs) might unintentionally drive vapers back to traditional cigarettes. A new study published in Health Economics suggests those fears may be misplaced for adult vapers. This national analysis was conducted by the Center for Tobacco Research at The Ohio State University Comprehensive Cancer Center - James Cancer Hospital and Solove Research Institute (OSUCCC – James).
Researchers surveyed 700 adults across the United States who had used e-cigarettes in the past 30 days. Study participants made hypothetical monthly purchases across seven product categories: disposable e-cigarettes, pod devices, pod starter kits, pod refill packs, tank devices, e-liquids, and cigarettes.
The study found that higher pre-tax base prices and higher taxes both reduced e-cigarette use, measured by product units purchased and the amount of nicotine consumed.
To reflect real-world conditions, the experiment used three pre-tax price levels, low, medium, and high, representing roughly the 25th, 50th, and 75th percentiles observed in the marketplace. Compared with lower prices, mid-range prices were linked to roughly 30 to 33% fewer product units purchased, while the highest prices were linked to roughly 49% to 51% fewer products purchased. Higher taxes also reduced purchases.
The analysis found that different e-cigarette types often act as substitutes: when the price of one product rises, adults may switch to another. At the same time, certain products function as complements, such as tank devices and e-liquids, or pod devices and refill packs, because they are used together. Notably, the study did not find statistically significant evidence that raising e-cigarette prices led to greater cigarette consumption among the general adult e-cigarette-using sample.
"Our findings suggest that increasing e-cigarette prices can effectively reduce vaping without the unintended consequence of more smoking among adult vapers," said Shaoying Ma, PhD, first author of the study and research scientist at the Center for Tobacco Research at the OSUCCC - James. "However, because adult vapers navigate a complex marketplace of disposables, pods, and tanks, a one-size-fits-all tax may not be sufficient to reduce nicotine consumption. Policymakers may consider tiered tax designs to achieve specific public health goals."
The researchers emphasize that price remains a powerful tool for curbing nicotine use, as states continue to refine their tobacco control strategies.
Coauthors in the study include Sooa Ahn, Hojin Park, Qian Yang, John FP Bridges, and Ce Shang.
About the Center for Tobacco Research at the OSUCCC – James
The Center for Tobacco Research at the OSUCCC – James is one of 14 Tobacco Centers of Regulatory Science (TCORS) tasked by the Food and Drug Administration and National Institutes of Health to conduct research to conduct research to inform the regulation of tobacco products.
