Working Paper: NBER ID: w30670
Authors: Dhaval M. Dave; Yang Liang; Johanna Catherine Maclean; Joseph J. Sabia; Matthew Braaksma
Abstract: Teenage drinking is a major public health concern, generating social costs of over $28 billion per year, including substantial external costs associated with alcohol-related traffic fatalities. At the same time, the high rate of electronic nicotine delivery systems (ENDS) use among teenagers has been deemed “an epidemic” by the U.S. Surgeon General, with state and local policymakers turning to e-cigarette taxes as a popular policy tool to curb nicotine vaping. This study is the first to explore the spillover effects of e-cigarette taxes on teenage drinking and alcohol-related traffic fatalities. We find that a one-dollar increase in e-cigarette taxes is associated with a 1 to 2 percentage-point reduction in the probability of binge drinking among teenagers and a 5 to 10 percent reduction in traffic fatalities involving teenagers driving under the influence of alcohol. Together, these results suggest the presence of alcohol-related health benefits from e-cigarette taxation.
Keywords: E-cigarette taxation; Teenage drinking; Traffic fatalities; Public health; Difference-in-differences
JEL Codes: H71; I12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| E-cigarette taxes (H26) | Teenage binge drinking (J13) |
| E-cigarette taxes (H26) | Alcohol-related traffic fatalities (R48) |
| E-cigarette taxes (H26) | Non-alcohol-related traffic fatalities (R48) |
| E-cigarette taxes (H26) | Teenage alcohol consumption (I12) |