Abstract:
Botswana has one of the highest adult tobacco-use rates in the WHO African Region.
Despite measures and policies put in place to control tobacco consumption, there is
still a widespread use of tobacco products in the country. This is because demand for
tobacco and tobacco products is mostly affected by changes in tobacco prices and related
taxes. This study therefore seeks to analyse the responsiveness of cigarette demand to
price changes in Botswana. This is done by estimating the conditional price elasticity
of cigarette demand using Deaton’s model and the Botswana Multi-Topic Household
Survey (BMTHS) data of 2015/16. The cigarette price elasticity of demand in Botswana
is estimated to be -0.86. The results indicate that a 10% increase in the price of cigarettes
will reduce cigarette demand by 8.6% among smokers. These findings provide the first
scientific evidence of conditional elasticity on consumption for policymakers in Botswana.
These findings are expected to guide policymakers and those involved in tobacco control
in formulating the most effective policies for regulating and controlling the consumption
of tobacco in Botswana.
Description:
The series comprises of papers which reflect work in progress or limited research efforts, which may be of interest to researchers and policy makers, or of a public education character. Working papers may have already been published elsewhere or may appear in other publications.
