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BIDPA Final Report

Responsiveness of Cigarette Demand to Price Changes in Botswana

  • File Details
  • Size: 25MB
  • Creator / Author: Joan Addedis
  • Resource Type: Africa Capacity Report
  • # Download: 254
  • Access: Open to Download

January, 2022

Basic Information
Creator / Author
Botswana Institute for Development Policy Analysis
Source / Publisher
Botswana Institute for Development Policy Analysis
Resource Type
Number of Pages
22
Geographic & Audience Details
Classification & Domains
Subject
Tobacco Control
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Abstract

The aim of this study is to analyze the responsiveness of cigarette demand to price changes in Botswana. This is done by estimating the conditional price elasticity of cigarette demand using Deatons model and the Botswana Multi-Topic Household Survey (BMTHS) 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 policy-makers 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.
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Keywords

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