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Increasing the price of tobacco by 5% reduces consumption by 3.5% | Medical Express

In a 30-year-old study conducted by social medicine expert Michael Kunze into pricing policy and tobacco consumption, it was found that increasing prices by only 1 percent reduces consumption by 0.5 percent. Under the guidance of the MedUni Vienna smoking expert, diploma student Richard Felsinger has completed an analysis of pricing policy for the years 1997 to 2015. The results have now been published to mark World No Smoking Day on 31 May. Today a 1 percent increase in the price of tobacco reduces consumption by as much as 0.69 percent.

That means: if you increase the price by 5 percent, consumption drops by 3.5 percent. And this is the level of regular price increase that Kunze considers to be realistic. “A level that is acceptable to all parties: to us doctors, because a lot of people would give up smoking, but also to tobacconists and the Finance Ministry, because revenues and taxes would still yield a reasonable surplus.”

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Increasing the price of tobacco by 5% reduces consumption by 3.5%.

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