Public policies, tobacco taxes and tobacco consumption: evidence from Hong Kong

This paper examines the impact of statutory policies on the prevalence of smoking in Hong Kong from 1982 to 2010. Different public policy interventions, including tobacco excise duties, bans on tobacco advertising and restrictions of public smoking, are reviewed and their separate and combined effects are empirically measured. The results confirm that increasing the price of tobacco products through taxation is the most effective tool for reducing tobacco consumption. Moreover, the Hong Kong Government’s comprehensive ban on tobacco advertising and restrictions on public smoking had a significant and negative impact on smoking prevalence, while the influences of individual policy interventions are less obvious. These results suggest that a comprehensive tobacco control programme is an effective means of reducing tobacco consumption.