The Economic Impact of Clean Indoor Air Laws

Institute of Public Health, Georgia State University, Atlanta, USA.
CA A Cancer Journal for Clinicians (Impact Factor: 115.84). 11/2007; 57(6):367-78. DOI: 10.3322/CA.57.6.367
Source: PubMed


Clean indoor air laws are easily implemented, are well accepted by the public, reduce nonsmoker exposure to secondhand smoke, and contribute to a reduction in overall cigarette consumption. There are currently thousands of clean indoor air laws throughout the Unites States, and the majority of Americans live in areas where smoking is completely prohibited in workplaces, restaurants, or bars. The vast majority of scientific evidence indicates that there is no negative economic impact of clean indoor air policies, with many studies finding that there may be some positive effects on local businesses. This is despite the fact that tobacco industry-sponsored research has attempted to create fears to the contrary. Further progress in the diffusion of clean indoor air laws will depend on the continued documentation of the economic impact of clean indoor air laws, particularly within the hospitality industry. This article reviews the spread of clean indoor air laws, the effect on public health, and the scientific evidence of the economic impact of implementation of clean indoor air laws.

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Available from: Michael P. Eriksen, Oct 04, 2015
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    • "Additionally, unlike survey data, stock price data are not subject to criticisms regarding the " subjective " nature of survey responses regarding a smoking ban (Eriksen and Chaloupka, 2007; Lund and Lund, 2011). "
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    ABSTRACT: Despite of public health hazards of second hand smoking (SHS), smoking bans on casinos remains controversial due to concerns about the potential economic loss. Applying an event study method, we examine the abnormal returns of casino stocks upon unexpected announcements of smoking bans from 2011 to 2015 in Macao. We find that the announcements of the bans were associated with differentiated abnormal returns of casino stocks. The stocks of the oldest casinos in Macao experienced cumulative abnormal losses of 1 to 6%, while the Las Vegas themed casinos in Macao experienced cumulative abnormal returns of 1.4% to 4.8%. Further, we find that poor facility quality and heavy dependence on the gaming revenue are associated with abnormal losses, while corporate social responsibility initiatives are associated with positive abnormal returns. Providing a full picture of the differentiated impacts of smoking bans, this study encourages casino firms to take initiative strategies to adapt to a potential smoking ban in the long run.
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    • "In a different study, using data drawn from 30 communities of California and Colorado in the U.S.A., taxable restaurant sales and retail sales were compared between 15 communities that had adopted a smoke-free policy and 15 communities that had not adopted such policies and no negative economic impact was found [36]. Furthermore in Massachusetts, U.S.A., meal taxes and employment in food, drinking and accommodation services were used as economic indicators in assessing the state-wide anti-smoking law [37]; the study did not provide significant evidence that state-wide tobacco regulation had affected in any negative way the different economic indicators. Consistent with these findings is the report on “The Health and Economic Impact of New York’s Clean Air Act” where the sales tax receipts for bars, full service restaurants, and total retail establishments before and after the ban were examined and no difference was observed [38]. "
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    ABSTRACT: Background Several countries, including Cyprus, have passed smoke-free legislations in recent years. The goal of this study was to assess the indoor levels of particulate matter in hospitality venues in Cyprus before and after the implementation of the law on 1/1/2010, evaluate the role of enforcement, and examine the legislation’s effect on revenue and employment. Methods Several hospitality venues (n = 35) were sampled between April 2007 and January 2008, and 21 of those were re-sampled after the introduction of the smoking ban, between March and May 2010. Data on enforcement was provided by the Cyprus Police whereas data on revenue and employment within the hospitality industry of Cyprus were obtained from the Cyprus Statistical Service; comparisons were made between the corresponding figures before and after the implementation of the law. Results The median level of PM2.5 associated with secondhand smoking was 161 μg/m3 pre-ban and dropped to 3 μg/m3 post-ban (98% decrease, p < 0.0001). Furthermore, in the year following the ban, the hotel turnover rate increased by 4.1% and the restaurant revenue by 6.4%; employment increased that same year by 7.2% and 1.0%, respectively. Conclusion Smoke free legislations, when enforced, are highly effective in improving the air quality and reducing the levels of indoor PM2.5. Strict enforcement plays a key role in the successful implementation of smoking bans. Even in nations with high smoking prevalence comprehensive smoking laws can be effectively implemented and have no negative effect on accommodation, food, and beverage services.
    BMC Public Health 01/2013; 13(1):76. DOI:10.1186/1471-2458-13-76 · 2.26 Impact Factor
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    • "In many countries, the propagation of smoke-free air policies has been slowed by fears that restrictions on smoking may have a negative impact on businesses [1]. The most vigorous debate has revolved around the business activity of pubs and restaurants [2]. Debates centre on the claim that there will be a loss of revenue as a result of smokers visiting these establishments less frequently, cutting their visits shorter and spending less money than they otherwise would if smoking were permitted. "
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    ABSTRACT: In the debate about laws regulating smoking in restaurants and pubs, there has been some controversy as to whether smoke-free laws would reduce revenues in the hospitality industry. Norway presents an interesting case for three reasons. First, it was among the first countries to implement smoke-free laws, so it is possible to assess the long-term effects. Second, it has a cold climate so if there is a negative effect on revenue one would expect to find it in Norway. Third, the data from Norway are detailed enough to distinguish between revenue from pubs and restaurants. Autoregressive integrated moving average (ARIMA) intervention analysis of bi-monthly observations of revenues in restaurants and pubs show that the law did not have a statistically significant long-term effect on revenue in restaurants or on restaurant revenue as a share of personal consumption. Similar analysis for pubs shows that there was no significant long-run effect on pub revenue.
    The European Journal of Health Economics 11/2010; 13(1):93-9. DOI:10.1007/s10198-010-0287-6 · 2.10 Impact Factor
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