Can cannabis be a suitable substitute for cigarettes as the price of the latter continues to rise? This is what a recent study published in the Journal of Population Economics hopes to address as a team of Australian researchers led by Curtin University investigated the economic relationship between using cannabis or tobacco over an individual’s lifetime in Australia, specifically regarding the rising prices of cigarettes over cannabis over the long term. This study holds the potential to help researchers and the public better understand the pros and cons of cannabis compared to cigarettes around the world.
For the study, the researchers analyzed survey data obtained from the Australian National Drug Survey Strategy Household Survey from almost 100,000 Australians between 2001 and 2019 to ascertain behavior patterns between cannabis and cigarettes as prices of cigarettes increased. The team found that for individuals under 40, cannabis use decreased as cigarette prices increased, with no changes being reported for individuals between ages 40 and 50. In contrast, the researchers found that individuals aged 50 and up increased their cannabis use as cigarette prices increased.
“In economics, we have this idea that people behave rationally, that we act according to price,” said Dr. Ranjodh Singh, who is a senior lecturer in the School of Accounting, Economics, and Finance at Curtin University and a co-author on the study. “But different segments of the population will respond differently to price increases, that’s why we use the term ‘life cycle approach’ when looking at consumption. So, on average, increasing tobacco prices makes cannabis use go down — but the opposite is true for this particular age group.”
Much like the United States, the legalization of cannabis across the country remains checkered, with some Aussie territories having decriminalized cannabis while others make it legal for personal use but not legal to sell.
What new connections between cannabis and tobacco will researchers make in the coming years and decades? Only time will tell, and this is why we science!
As always, keep doing science & keep looking up!
Sources: Journal of Population Economics, EurekAlert!