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 is the first to explore the effects of ENDS taxes on substance use. We find that a one-dollar increase in ENDS taxes (2019$) is associated with a 1-to-2 percentage point decline in teen marijuana use and a 0.8 percentage point reduction in adult marijuana use. This result is consistent with e-cigarettes and marijuana being economic complements. 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 over this sample period.
Authors
Dhaval M. Dave, Yang Liang, Johanna Catherine Maclean, Caterina Muratori, Joseph J. Sabia
- Acknowledgements & Disclosure
- We thank Monica Deza and Kyu Matsuzawa, and seminar participants at the University of Kentucky, Southern Economic Association Annual Conference, Western Economic Association Annual Conference, and IHEA Virtual Seminar on the Economics of Risky Health Behaviors for very helpful comments. Dr. Sabia acknowledges research support from the Center for Health Economics & Policy Studies (CHEPS) at San Diego State University, which includes grants received from the Charles Koch Foundation. All errors are the authors’. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
- DOI
- https://doi.org/10.3386/w32302
- Published in
- United States of America
