Impact of the Tobacco Price Support Program on tobacco control in the United States.

OBJECTIVES

To evaluate the impact of the United States Tobacco Price Support Program (TPSP) on domestic cigarette consumption and the potential political impact of the TPSP on efforts to reduce smoking.

DATA SOURCES

Published studies known to the authors and a search of AGRICOLA from 1980 to 1996.

STUDY SELECTION

Studies published in a refereed journal or research reports published by an accredited university or institution.

DATA SYNTHESIS

The TPSP decreases cigarette use by increasing the price of cigarettes. The price increase resulting from the TPSP, however, is small--about one cent per pack. The resulting decrease in cigarette consumption is also very modest--an estimated 0.23%. However, the TPSP creates tobacco quota owners, who have a strong financial interest in opposing measures to reduce smoking. The TPSP also changes the political influence of tobacco farmers by keeping a large number of small farmers in tobacco production.

CONCLUSIONS

The negative impact of the TPSP (opposition to tobacco control measures) is probably greater than the positive impact of the programme (reducing smoking). Therefore, the net impact of the TPSP on tobacco control efforts is likely to be negative.