Economists say taxing vape products may lead to increased cigarette sales
According to reports, a study co-authored by Temple University professor of economics Maclean shows that raising taxes on steam products may increase cigarette sales.
Together with five other researchers, Maclean analyzed the impact of vape taxes on its prices and sales, as well as the sales of other tobacco products in eight states and two large counties. They found that when the price of steam products rises, consumers buy vape products less and cigarettes more.
Maclean said: "In the context of economic alternatives, this is a fact recognized in economics. Basically, consumers view vape products as an alternative source of nicotine.
Macleans said legislators may not know the impact of these increases on cigarette sales and consumption. "I think they considered vape products in isolation. For example, policy makers wanted to reduce vape usage, so they decided to tax products, but did not consider the impact of taxes on smoking outcomes.