TO 'VAPE' OR SMOKE? EXPERIMENTAL EVIDENCE ON ADULT SMOKERS

A growing share of the U.S. population uses e-cigarettes but the optimal regulation of these controversial products remains an open question. We conduct a discrete choice experiment to investigate how adult tobacco cigarette smokers ' demand for e-cigarettes and tobacco cigarettes varies by four attributes: (1) whether e-cigarettes are considered healthier than tobacco cigarettes, (2) the effectiveness of e-cigarettes as a cessation device, (3) bans on use in public places, and (4) price. We find that adult smokers' demand for e-cigarettes is motivated more by health concerns than by the desire to avoid smoking bans or higher prices. (JEL C35,112,118)
I. INTRODUCTION E-cigarettes are relatively new products in U.S. tobacco markets; they were developed in China in 2003 and entered the United States in 2007 (Riker et al. 2012). Since [...]