final - ECO321
final - ECO321
Hoichang Noh
ECO 321
6 Dec 2021
Introduction
Thousands of United States citizens have been killed by just one habitual behavior,
cigarette smoking. Cigarette smoking is considered one of the most fatal habitual behaviors that
threaten public health in the United States. Recently, the death of one out of five individuals can
be attributed to cigarette smoking in the United States (Gee. et al.,). Due to the rising public
death rate of cigarette smoking, billions of dollars have been invested and many professionals
working for public health such as clinicians, policymakers, and public health professionals are
dedicated to limit future tobacco use by various mechanisms (Gee. et al.,). As a result, the
declines in national combustible tobacco smoking rates could finally be seen from 1965 to 2000
by raising tobacco taxes, mass media campaigns, nicotine replacement therapies, prescription
The advent of e-cigarette ruined these efforts and led a new generation of youths to
become addicted to nicotine and tobacco products (Gee. et al.,). Thousands of Americans still die
annually due to nicotine addiction, which has a direct effect on death caused by tobacco use
(Gee. et al.,). According to AJPH (A publication of the American Public Health Association),
preventing youth exposure from smoking is the most important step to stop this tragedy because
nearly 90% of adults who smoke cigarettes daily were exposed to smoking by 19 years old and
started cigarettes by 26 years old (Gee, et ap.,). For example, an experiment conducted by the
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state of Louisiana stated that it is true that tobacco smoking rates of youths is showing a
downward trend for the past years, but an abrupt increase in e-cigarette use can be seen among
high school students with more than 45% of high school youths reporting having used an e-
cigarette in Louisiana (Gee. et al.,). Likewise, the high use of e-cigarettes among youth was
driven by “corporate marketing practices” that targeted youths with appealing flavors,
advertisements, and the introduction of new handy e-cigarette such as “Juul” in the United States
(Teresa W. Wang). To be more specific, the high rate of e-cigarette use is shown not only in
Louisiana, but the entire country is experiencing a downward trend, but the whole US is also
experiencing a downward tobacco smoking rate and upward e-cigarette smoking rate. As a
response to this changing trend, the state government, the local government, and the US Food
and Drug Administration (FDA) banned flavored e-cigarettes sales without “restricting open
system of custom mixed and vape shop e-liquids in January 2020” (Abigail S. Friedman).
This rising public health challenge changed the federal legal age to purchase tobacco
change from 18 to 21 years in 2019 (only 33 states passed this legislation) and the Food and
Drug Administration took a step to prioritize enforcement against the unauthorized flavored
cigarette products in January 2020 and July 2020 by sending warning messages to companies or
penalizing companies for high rates of youth uptake (Teresa W. Wang). At this point, market
failure can be introduced due to market distortion that the youth demand more e-cigarettes, while
FDA banned flavored e-liquids. E-cigarette indeed produces both positive and negative
externalities. E-cigarettes not only can benefit the third party by being a substitute for
combustible tobacco, but they can also harm the environment with e-cigarette plastic waste, and
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harm public health by alluring non-smokers to start smoking. However, in this aspect, it can be
concluded that e-cigarette produces negative externalities because e-cigarette, regardless of being
a substitute for combustible tobacco, still causes a significant negative impact on public health.
Overall, public health in the entire United States is harmed due to the high rate of smoking with
irresistible nicotine addiction. While the rate of combustible tobacco uses declined with various
mechanisms implemented by professionals such as raising the tax, using mass media, and
education, the rate of youth using e-cigarettes has increased because of its appealing flavors and
devices targeted to the youth by companies. Since preventing the youth from exposure to
smoking is the best solution for this public issue, it is imperative to analyze the effects of
smoking flavored e-cigarettes in youth in greater detail on the entire public health in the United
States.
Literature Review
smoking tobacco and its unknown possible effects on public health and indoor air quality
promote anxiety into society. An experiment was implemented to compare the effects of e-
cigarette use to standard tobacco cigarettes. For the method of the experiment, “four different
high nicotine e-liquids were vaporized in two sets of experiments by generic 2-piece e-cigarettes
to collect emissions and assess indoor air concentrations of standard tobacco smoke for
comparison” (Taylor & Francis). As a result, the experiment found out that e-cigarettes produce
a very small amount of exposure relative to standard tobacco cigarettes and the study further
indicates that the effects of e-cigarette emissions have no apparent risk to human health based on
As e-cigarette use has become popular among the youth, the impact of e-cigarette use on
oral health is also unknown whereas the impact of conventional smoking on oral health is well
recognized by the public (Yang, Irene, et al). A study was conducted to inform the public about
the impact of e-cigarette on oral health with evidence through three electronic databases:
PubMed, Web of Science, and Embase (Yang, Irene, et al). This study mainly focuses on the oral
effects such as mouth effects, throat effects, and dental effects, etc. (Yang, Irene, et al). As a
result, e-cigarette users had minor and temporary symptoms on the mouth and throat and
(Yang, Irene, et al). Meanwhile, e-cigarette exposure increased the risk for deteriorating
periodontal (teeth and gums), dental, and gingival health as well as the changes to the oral
microbiome with components of cytotoxic, genotoxic, and carcinogenic properties (Yang, Irene,
et al). Moreover, extensive dental damage from e-cigarette explosions was reported in case
reports (Yang, Irene, et al). Based on the study, it is true that switching to e-cigarettes from
conventional smoking can mitigate several symptoms to some extent, but several deteriorating
Additionally, a study was conducted to see whether taxes on e-cigarettes and raising the
tobacco legal purchasing age to 21 years (T21) with state-level e-cigarette inclusive smoke-free
policies (ESF) affect recent upward trends in youth e-cigarette use (Kelvin Choi). The study,
comparing participants from 34 different US states with ESF policies, taxes, and T21 policies,
tells us that the state-level ESF and T21 have effects on limiting the growth of youth e-cigarette
use, despite an overall national increase (Kelvin Choi). Especially, higher e-cigarette tax rates
Analysis
The negative consumption externality model can be used to show the possible outcomes
of the federal ban on the flavored e-cigarette sale to oppress the uprising trend of the youth e-
cigarette smoking rate in the United States. Negative externality in this case also shows that the
flavored e-cigarette consumed adversely affects the third party such as the effects of e-cigarette
The graph above represents the market economy before the federal ban on flavored e-
cigarette sales in the United States. Private marginal benefit (PMB) shows that individuals
benefit from consuming flavored e-cigarette and social marginal benefit (SMB) indicates the
total marginal utility of the flavored e-cigarette to the public (PMB + external benefits). This is
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shown in the graph with an output of flavored e-cigarette on the x-axis, price per flavored e-
cigarette pod (e-liquid) on the y-axis, and the market quantity of flavored e-cigarette represented
Now, the federal ban on flavored e-cigarette is implemented in the United States. Private
marginal cost (PMC), the cost to produce flavored e-cigarettes such as labor and equipment, and
supply curve shifting left due to the federal ban on the flavored e-cigarette (S=PMC=SMC)
become vertical axis with zero quantity at any price as indicated with red line on the y axis.
Moreover, the social marginal benefit with new efficient quantity is created because flavored e-
cigarettes produce negative externalities such as plastic waste from e-cigarettes. Thus, the social
marginal benefit is located below the private marginal benefit whereas the supply of flavored e-
cigarettes comes with zero quantity. As a result, the deadweight loss, which can also be called
economic efficiency loss, is created (the shaded triangle on the graph). Lastly, as the
S=PMC=SMC curve shifts left to become vertical axis, we can see that the new quantity created
by the federal ban on flavored e-cigarettes is far below the efficient quantity of flavored e-
cigarettes.
The effects of the federal ban on flavored e-cigarettes in the United States can be best
addressed using time series analysis. As the name indicates, time series analysis, in this case,
requires data collected over time at consistent intervals to see the relationship between the
federal ban on flavored e-cigarettes and the susceptibility of youth smoking e-cigarettes.
To estimate the effects of a federal ban on flavored e-cigarettes along with the
susceptibility of youth smoking e-cigarettes, this analysis will not only focus on investigating
high school students and middle school students by a national survey to see the frequency of
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vaping and whether they are current and previous users who have used e-cigarette or non-
smokers but also focus on the two different timelines by comparing the effects of after and
before the federal ban on a flavored e-cigarette. This investigation will lead to show the factual
changes of their smoking status (smoking or non-smoking) along with the federal policy.
implementing the time series analysis. The location represents similar trends in income, race,
education, and spending. The frequency of vaping trends and the status of smoking along with
the federal ban help us see the effects of the federal policy. Moreover, comparing youths such as
middle school students and high school students in similar districts along with the two different
timelines will lead the results unbiased. However, since the investigation is focusing on the
effects of flavored e-cigarettes in the United States, data from the 2020 National Youth Tobacco
Survey (NYTS) may show the youth smoking trends in the entire US (Wang, et al. 2020). NYTS
found out that youth e-cigarette use rose between 2017 and 2018 by analyzing vaping patterns
(Allison M Glasser) and decreased during 2019 and 2020 with “overall prevalence, frequent use,
and flavored e-cigarette use remained high” (Wang TW). Likewise, conducting a survey targeted
to high school students and middle school students with location, frequency of vaping or
smoking, and status of smoking will help collect data over time at consistent intervals and see the
effects of a federal ban on flavored e-cigarette whether it increases or decreases the youth vaping
Conclusion
The federal ban on flavored e-cigarettes that intended to reduce youth e-cigarette use is
necessary for our society because preventing youth exposure to smoking or vaping is the best
solution to stop the rising public death rate and the previously increasing youth vaping rate by
appealing advertisements, flavors, and a rising trend among young adults. Theoretically, the
federal ban on flavored e-cigarettes with the rising perception of e-cigarette risks leads to social
marginal benefit located below the private marginal benefit with zero quantity at any price.
Empirically, time series analysis can be used for federal policy. By conducting a survey targeted
to middle school students and high school students along with two different timelines (before and
after the federal ban) based on location, frequency of vaping, and status of smoking, the effect of
the federal ban on flavored e-cigarettes in reducing youth smoking rate in the United States can
be investigated. Lastly, several studies were conducted to test the hazard of e-cigarette use such
as comparing e-cigarette emissions and indoor air concentrations of standard tobacco smoke,
analyzing participants from 34 different US states with ESF policies, taxes, and T21 policies, and
studying the impact of e-cigarette use on oral health. The key conclusion that was found from
these studies is that it is true that e-cigarette use substituting for conventional smoking mitigates
fatal symptoms to some extent and eliminates secondhand effects, but it also has a high
possibility of driving new concerns including e-cigarette explosions and toxic chemical
components in e-liquids.
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