The Distributional Effects of Tobacco Taxation: The Evidence of White and Clove Cigarettes in Indonesia

doi:10.1596/1813-9450-8558

Publication:
The Distributional Effects of Tobacco Taxation: The Evidence of White and Clove Cigarettes in Indonesia

dc.contributor.author	Fuchs, Alan
dc.contributor.author	Del Carmen, Giselle
dc.date.accessioned	2018-08-23T16:13:21Z
dc.date.available	2018-08-23T16:13:21Z
dc.date.issued	2018-08
dc.description.abstract	Despite the well-known positive impact of tobacco taxes on health outcomes, policy makers hesitate to use them because of their possible regressive effect, that is, poorer deciles are proportionally more negatively affected than richer ones. Using an extended cost-benefit analysis to estimate the distributional effect of white and clove cigarettes in Indonesia, this study finds that the long-run impact may be progressive. The final aggregate effect incorporates the negative price effect, but also changes in medical expenditures and additional working years. The analysis includes estimates of the distributional impacts of price rises on cigarettes under various scenarios using 2015–16 Indonesia National Socioeconomic Surveys. One contribution is to quantify the impacts by allowing price elasticities to vary across consumption deciles. Overall, clove cigarette taxes exert an effect that depends on the assumptions of conditional price elasticity. If the population is more responsive to tobacco price changes, then people would experience even more gains from the health and work benefits. More research is needed to clarify the distributional effects of tobacco taxation in Indonesia.	en
dc.identifier	http://documents.worldbank.org/curated/en/947511534513877197/The-distributional-effects-of-tobacco-taxation-the-evidence-of-white-and-clove-cigarettes-in-Indonesia
dc.identifier.doi	10.1596/1813-9450-8558
dc.identifier.uri	https://hdl.handle.net/10986/30285
dc.language	English
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Policy Research Working Paper;No. 8558
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo
dc.subject	TOBACCO TAX
dc.subject	DISTRIBUTIONAL IMPACT
dc.subject	INEQUALITY
dc.subject	REGRESSIVITY
dc.subject	CIGARETTE SMOKING
dc.subject	PRICE EFFECT
dc.subject	PRICE ELASTICITY
dc.subject	PVOERTY
dc.subject	TAXATION
dc.subject	EXCISE TAX
dc.subject	SIN TAX
dc.subject	CLOVE CIGARETTE
dc.title	The Distributional Effects of Tobacco Taxation	en
dc.title.subtitle	The Evidence of White and Clove Cigarettes in Indonesia	en
dc.type	Working Paper	en
dc.type	Document de travail	fr
dc.type	Documento de trabajo	es
dspace.entity.type	Publication
okr.crossref.title	The Distributional Effects of Tobacco Taxation: The Evidence of White and Clove Cigarettes in Indonesia
okr.date.disclosure	2018-08-17
okr.doctype	Publications & Research
okr.doctype	Publications & Research::Policy Research Working Paper
okr.docurl	http://documents.worldbank.org/curated/en/947511534513877197/The-distributional-effects-of-tobacco-taxation-the-evidence-of-white-and-clove-cigarettes-in-Indonesia
okr.guid	947511534513877197
okr.identifier.doi	10.1596/1813-9450-8558
okr.identifier.externaldocumentum	090224b085f8a63d_1_0
okr.identifier.internaldocumentum	30355652
okr.identifier.report	WPS8558
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/947511534513877197/pdf/WPS8558.pdf	en
okr.region.administrative	East Asia and Pacific
okr.region.country	Indonesia
okr.statistics.combined	1645
okr.statistics.dr	947511534513877197
okr.statistics.drstats	1263
okr.topic	Health, Nutrition and Population::Tobacco Use and Control
okr.topic	Macroeconomics and Economic Growth::Taxation & Subsidies
okr.topic	Poverty Reduction::Inequality
okr.unit	Poverty and Equity Global Practice
relation.isSeriesOfPublication	26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery	26e071dc-b0bf-409c-b982-df2970295c87