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TitleResponsiveness of Cigarette Demand to Price Changes in Botswana
AuthorBotswana Institute for Development Policy Analysis
SubjectTobacco Control
Date of Publication2022
PublisherBotswana Institute for Development Policy Analysis
Number of Pages22
AbstractThe 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 Deaton’s 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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