The Effect of E-Cigarette Taxes on Substance Use

B-Tier
Journal: Journal of Health Economics
Year: 2025
Volume: 102
Issue: C

Authors (5)

Dave, Dhaval (not in RePEc) Liang, Yang (San Diego State University) Maclean, Johanna Catherine (not in RePEc) Muratori, Caterina (Universitat de Barcelona) Sabia, Joseph J. (not in RePEc)

Score contribution per author:

0.402 = (α=2.01 / 5 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Public health advocates warn that the rapid growth of legal markets for electronic nicotine delivery systems (ENDS) may generate a “gateway” to marijuana and harder drug consumption, particularly among teenagers. This study explores the effects of ENDS taxes on substance use. Analyses are based on difference-in-differences and event-study methods applied to both survey (Youth Risk Behavior Surveillance System and Behavioral Risk Factor Surveillance System) and administrative (Treatment Episode Data Set) data. Our results imply that a one-dollar increase in ENDS taxes (2023$) is associated with a 1.0 to 1.5 percentage point decline in teen marijuana use and in co-use of ENDS and marijuana. This result is consistent with e-cigarettes and marijuana being economic complements. We also find that youth responses to ENDS taxes, in terms of their ENDS use and spillovers into marijuana use, appear to moderate over the longer term. We find no evidence that ENDS taxes affect drug treatment admissions or consumption of illicit drugs other than marijuana such as cocaine, methamphetamine, or opioids.

Technical Details

RePEc Handle
repec:eee:jhecon:v:102:y:2025:i:c:s0167629625000578
Journal Field
Health
Author Count
5
Added to Database
2026-01-25