Efterfrågans priselasticitet på cigaretter på kort- och lång sikt
En studie av effekten på cigarettskatten och cigarettpriset i Sverige mellan år 1996-2012
Price elasticity of demandLong-runShort-runTaxationTobaccoCigarettesEfterfra?gans priselasticitetLa?ng siktKort siktBeskattningTobakCigaretter
The study examines the price elasticity of demand for cigarettes in the short- and long run in Sweden. The time period for the study is 17 years and covers the years 1996-2012. The results of the study shows that the price elasticity of demand for cigarettes in the long run is higher than in the short run for the Swedish consumers, which is in line with previous studies in the area. The fact that the price elasticity of demand for cigarettes is higher in the long run, indicates that the substitution effect has a significant impact on the price elasticity of demand for cigarettes in the long run. The study was conducted in two parts where the authors investigated the effect of cigarette tax on cigarette prices and in addition the cigarette prices impact on the demand for cigarettes in Sweden. The combined result of the study demonstrates that increasing the cigarette tax by 10 per cent means that the demand for cigarettes is reduced by 5 per cent, while government revenues from the cigarette tax will increase by 4.5 per cent. The result in this paper shows why the state's incentive to raise the cigarette tax is twofold, since a tax increase will generate health benefits through reduced consumption and generate increased revenues to the state. These incentives are also shown to have a greater impact in the long term.