Appendices to The Impact of E-Cigarette Regulation on the Illicit Trade in Tobacco Products in the European Union

Abstract

This paper contains the appendices to the report "The Impact of E-Cigarette Regulation on the Illicit Trade in Tobacco Products in the European Union" (https://ssrn.com/abstract=3435177). The contents will be of interest to researchers studying EU regulations regarding tobacco and e-cigarette sales and usage.

Appendix 1 includes tables and data covering regulation of tobacco and a detailed description of tobacco policies as of 2018 across the EU. These data include the regulatory group based on the Tobacco Control Scale by country and year, policies concerning age restrictions and use of tobacco by adults, cigarette prices and taxation, smoking bans, advertising restrictions, tobacco control expenditure, WHO FCTC status, and support for smoking cessation.

Appendix 2 contains information and data on e-cigarette regulation in the EU. Regulatory groupings and detailed data are included. Data include information on product bans, advertising bans, age restrictions, size limits on e-liquid cartridges, nicotine limits in e-liquids, banned substances in e-cigarettes, flavor bans, distance sales bans, and public use bans, by country and year.

The empirical work in the report demonstrated that there is a positive association between e-cigarette sales revenue and the price of cigarettes in the EU. Appendix 3 shows the implications of that association for whether the two goods are substitutes. Under plausible economic assumptions for the markets considered here, it is shown that the former implies the latter. It is not necessarily the case that a positive association between e-cigarette revenue and the price of cigarettes implies that the two goods are substitutes. However, in two important cases, that implication does follow, and plausible cases can be made for both of those cases for the market under consideration. Those cases are when there is no connection between cigarette prices and the supply curve for e-cigarettes, and when the supply curve is perfectly elastic.