Determinants of smoking intensity in South Africa: Evidence from township communities

In order to analyze the smoking patterns in economically disadvantaged communities in South Africa, this paper examines the determinants of smoking intensity, using pooled data on price and non-price determinants of smoking from two cross-sectional surveys conducted in 2017 and 2018 to investigate the drivers of conditional cigarette demand among daily smokers. The analysis was done using a negative binomial regression. The results show that smokers reduce the number of cigarettes smoked daily when cigarette prices increase. The conditional price elasticity of cigarette demand of -0.295 for the overall sample shows that a 10% increase in cigarette price leads to a 2.95% decline in cigarette consumption among smokers. For young smokers, a 10% increase in cigarette price causes their smoking intensity to fall by 5%. Similar to other studies, the response of female smokers to cigarette price changes is statistically insignificant. Other factors affecting the conditional demand for cigarettes are education, race, single stick sales, gender, wealth, and age. We conclude that cigarette prices play a significant role in reducing smoking intensity among the South African poor. Since the magnitude of the price effect varies across age groups, races, and genders, the policy of higher tobacco excise taxes should be accompanied by interventions targeted at those less responsive to price-related measures.