Effects of Tightening Smoking Regulations on Take-up and Cessation of Smoking

We use a nationally representative Australian panel survey that allows us to track individuals' smoking behaviour from 2001 to 2003, a period during which new tobacco regulations came into effect in four of the eight state and territory jurisdictions. We exploit this variation in regulations over time and across jurisdictions to produce estimates of the effects of tighter smoking regulations on smoking behaviour within the year the regulations were introduced. Although increased (non-pecuniary) costs of smoking will almost certainly have some negative effects on smoking, our analysis suggests that effects on smoking rates in the short term are negligible.