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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    • "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.
    Full-text · Article · Jul 2015
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    • "Economic data are largely objective, and there is generally intense interest in the potential impacts of smoke-free air legislation on businesses (ANRF, 2006; Centers for Disease Control and Prevention [CDC], 2008). Numerous economic-impact studies and metaanalyses of local and statewide smoke-free indoor air policies around the United States have found no adverse economic changes for bars, restaurants, and other hospitality industries resulting from smoke-free air legislation (ANRF, 2005, 2006; Eriksen & Chaloupka, 2007; Glantz & Smith, 1994; Hyland, Cummings, & Nauenberg, 1999; International Agency for Research on Cancer, 2009; Kayani et al., 2012; Levy, 2012; Pyles & Hahn, 2012; Pyles, Mullineaux, Okoli, & Hahn, 2007; Scollo, Lal, Hyland, & Glantz, 2003). In addition, several peer-reviewed studies have found positive economic effects following smoke-free laws (Boles, Dilley, Maher, Boysun, & Reid, 2010; Cowling & Bond, 2005; Glantz & Charlesworth, 1999; Scollo & Lal, 2008). "
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    ABSTRACT: Background: Many stakeholders were interested in the potential economic impact of Pennsylvania's 2008 Clean Indoor Air Act (CIAA). This study focused on the examination of economic change subsequent to CIAA and, because CIAA allows certain venue exemptions among eating and drinking establishments, if the allowance of exemptions influenced that impact. Policy analysis. Prais-Winsten regressions were employed to assess effects of CIAA and law exemptions on county-level quarterly taxable sales in restaurants and drinking establishments. Regressions controlled for general economic activity, trends in eating/drinking establishment sales, seasonality, and county characteristics. Findings: Across models, CIAA had no significant negative effects on taxable sales in full-/limited-service restaurants or drinking establishments and some positive effects. CIAA exemptions for drinking establishments do not offer a clear economic benefit. Restaurant and drinking establishment taxable sales were strongly related to overall economic conditions and seasonality. Conclusion: After controlling for confounding factors, and consistent with the weight of the evidence from literature on the economic impact of smoke-free policies, our study concludes that the Pennsylvania CIAA had no negative effects on per capita restaurant and drinking establishment taxable sales. High rates of drinking establishment exemptions were not economically beneficial. This study can inform efforts to make smoke-free laws more comprehensive.
    Full-text · Article · Jan 2014 · Health Promotion Practice
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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.
    Full-text · Article · Jan 2013 · BMC Public Health
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