Smoke-free laws and bar revenues in California – the last call
Article first published online: 7 SEP 2005
Copyright © 2005 John Wiley & Sons, Ltd.
Volume 14, Issue 12, pages 1273–1281, December 2005
How to Cite
Cowling, D. W. and Bond, P. (2005), Smoke-free laws and bar revenues in California – the last call. Health Econ., 14: 1273–1281. doi: 10.1002/hec.1016
- Issue published online: 1 DEC 2005
- Article first published online: 7 SEP 2005
- Manuscript Accepted: 8 APR 2005
- Manuscript Received: 1 SEP 2003
- smoke-free policies;
- bar revenue
California was the first state to implement smoke-free restaurant and bar laws, in 1995 and 1998, respectively. We analyze how these laws affected the distribution of revenues between bars and restaurants. Critics of smoke-free bar laws have often claimed that a prohibition on smoking reduces bar revenues. Similar claims are made for the effects of smoke-free restaurant laws. Such claims implicitly assume that a smoke-free law reduces expenditures by smokers by more than it increases expenditures by non-smokers. Using tax revenue data from 1990 to 2002, our analysis suggests that the actual effect is just the opposite: the 1995 smoke-free restaurant law is associated with an increase in restaurant revenues, while the 1998 smoke-free bar law is associated with an increase in bar revenues. Copyright © 2005 John Wiley & Sons, Ltd.