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Open Access
Article
Publication date: 28 April 2020

Hien Thu Thi Nguyen, Long Thanh Giang and Toan Ngoc Pham

The purpose of this study was to evaluate how higher tax on tobacco would influence output and employment in Vietnam.

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Abstract

Purpose

The purpose of this study was to evaluate how higher tax on tobacco would influence output and employment in Vietnam.

Design/methodology/approach

The authors used micro-simulation techniques proposed by Walbeeck (2010). Both national data (from Input–Output Table) and household data (Vietnam Household Living Standard Survey) were utilized.

Findings

The results showed that any increase in the excise tax for tobacco would have positive net impacts on both national output and employment. The tobacco industry would not be significantly affected due to its small contribution to national economy and employment. More importantly, money released from reduced tobacco consumption would be reallocated to other goods and services, and thus outputs and jobs in nontobacco sectors would increase.

Research limitations/implications

The key limitation of this study was due to unavailability of updated data, especially Input–Output Table as well as household living standard survey.

Practical implications

This study concluded that government should increase tax on cigarette along with a well-planned roadmap to avoid unexpected consequences on income and employment of laborers in this sector.

Originality/value

This study replicated a popular approach in order to verify an important government policy (i.e. effect of tax on tobacco on output and employment) under Vietnamese context.

Details

Journal of Economics and Development, vol. 22 no. 1
Type: Research Article
ISSN: 1859-0020

Keywords

Open Access
Article
Publication date: 10 September 2020

Derek Yach

The World Health Organization Framework Convention on Tobacco Control (WHO FCTC) is the first treaty negotiated under the auspices of the WHO. This study aims to describe progress…

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Abstract

Purpose

The World Health Organization Framework Convention on Tobacco Control (WHO FCTC) is the first treaty negotiated under the auspices of the WHO. This study aims to describe progress toward the framework’s goals, setbacks and strategies to update its articles to optimize outcomes.

Design/methodology/approach

A review of relevant literature, including papers in this special issue, forms the basis for identifying steps necessary to amplify the impact of the FCTC.

Findings

The WHO suggests that there are 1.3 billion users of tobacco globally. The expected deaths associated with tobacco use could be dramatically reduced by hundreds of millions between now and 2060 through measures that improve cessation and harm reduction support among adults. Additional steps needed to achieve the goals of the FCTC include developing new initiatives to address areas of profound neglect (for example, women); investing in global research and innovation; addressing the needs of vulnerable populations; and establishing a mechanism to fund priority actions required by low- and middle-income countries, including support for alternative livelihoods for smallholder farmers.

Practical implications

In November 2020, the WHO FCTC Parties will host their next Conference of the Parties (COP9) in the Netherlands. This paper aims to contribute to the needed policy decisions related to this meeting. Since acceptance of this article, the WHO FCTC team announced that doe to the COVID-19 pandemic COP9 has been rescheduled till November 2021.

Originality/value

There exists a need to prioritize the goals of tobacco control and offer clear strategies for its execution. This paper fills this niche via a thorough and up-to-date analysis of how to amend and enforce the FCTC.

Details

Drugs and Alcohol Today, vol. 20 no. 3
Type: Research Article
ISSN: 1745-9265

Keywords

Open Access
Article
Publication date: 3 November 2023

Donna Marshall, Jakob Rehme, Aideen O'Dochartaigh, Stephen Kelly, Roshan Boojihawon and Daniel Chicksand

This article explores how companies in multiple controversial industries report their controversial issues. For the first time, the authors use a new conceptualization of…

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Abstract

Purpose

This article explores how companies in multiple controversial industries report their controversial issues. For the first time, the authors use a new conceptualization of controversial industries, focused on harm and solutions, to investigate the reports of 28 companies in seven controversial industries: Agricultural Chemicals, Alcohol, Armaments, Coal, Gambling, Oil and Tobacco.

Design/methodology/approach

The authors thematically analyzed company reports to determine if companies in controversial industries discuss their controversial issues in their reporting, if and how they communicate the harm caused by their products or services, and what solutions they provide.

Findings

From this study data the authors introduce a new legitimacy reporting method in the controversial industries literature: the solutions companies offer for the harm caused by their products and services. The authors find three solution reporting methods: no solution, misleading solution and less-harmful solution. The authors also develop a new typology of reporting strategies used by companies in controversial industries based on how they report their key controversial issue and the harm caused by their products or services, and the solutions they offer. The authors identify seven reporting strategies: Ignore, Deny, Decoy, Dazzle, Distort, Deflect and Adapt.

Research limitations/implications

Further research can test the typology and identify strategies used by companies in different institutional or regulatory settings, across different controversial industries or in larger populations.

Practical implications

Investors, consumers, managers, activists and other stakeholders of controversial companies can use this typology to identify the strategies that companies use to report controversial issues. They can assess if reports admit to the controversial issue and the harm caused by a company's products and services and if they provide solutions to that harm.

Originality/value

This paper develops a new typology of reporting strategies by companies in controversial industries and adds to the theory and discourse on social and environmental reporting (SER) as well as the literature on controversial industries.

Details

Accounting, Auditing & Accountability Journal, vol. 36 no. 9
Type: Research Article
ISSN: 0951-3574

Keywords

Open Access
Article
Publication date: 10 September 2020

Renée O'Leary and Riccardo Polosa

This paper aims to overview the need for tobacco harm reduction, the consumer products that facilitate tobacco harm reduction and the barriers to its implementation. The worldwide…

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Abstract

Purpose

This paper aims to overview the need for tobacco harm reduction, the consumer products that facilitate tobacco harm reduction and the barriers to its implementation. The worldwide endemic of tobacco smoking results in the death of over seven million smokers a year. Cigarette quit rates are very low, from 3%–12%, and relapse rates are high, from 75%–80% in the first six months and 30%–40% even after one year of abstinence. In addition, some smokers do not desire to quit. Cigarette substitution in tobacco harm reduction is one strategy that may reduce the burden of morbidity and mortality.

Design/methodology/approach

This review examines the displacement of smoking through substitution of non-combustible low-risk products such as snus, heated tobacco products and e-cigarettes.

Findings

Toxicological testing, population studies, clinical trials and randomized controlled trials demonstrate the potential reductions in exposures for smokers. Many barriers impede the implementation of product substitution in tobacco harm reduction. These products have been subjected to regulatory bans and heavy taxation and are rejected by smokers and society based on misperceptions about nicotine, sensational media headlines and unsubstantiated fears of youth addiction. These barriers will need to be addressed if tobacco harm reduction is to make the maximum impact on the tobacco endemic.

Originality/value

This review provides the rationale for tobacco harm reduction, evaluates the current products available and identifies the barriers to implementation.

Details

Drugs and Alcohol Today, vol. 20 no. 3
Type: Research Article
ISSN: 1745-9265

Keywords

Open Access
Article
Publication date: 12 September 2023

Mai-Huong Vo, Ngoc-Anh Nguyen, Estelle Dauchy and Nuong Nguyen

This study aims to estimate the pass-through rate of the increases in the excise tax and TCF tax on tobacco in Vietnam. This study seeks to shed light on how the tax burden is…

Abstract

Purpose

This study aims to estimate the pass-through rate of the increases in the excise tax and TCF tax on tobacco in Vietnam. This study seeks to shed light on how the tax burden is split between consumers and producers and inform policy discussions in the country. Using panel micro-level data collected from three waves of a nationwide retailer's survey, this study provides an evidence-based pass-through estimation for tobacco tax in Vietnam and contributes to the understanding of tax policy on smoking and smoking-related issues.

Design/methodology/approach

Following increases in the excise tax and TCF tax on tobacco in 2019, the differential effect of the tax hike on the “treatment group” (domestic cigarettes) versus the “control group” (illicit cigarettes) using a difference-in-difference (DID) analysis has been studied. The study utilized unique longitudinal retailers’ data on cigarettes prices in Vietnam from 2018 to 2019 to estimate the tax pass-through rate for some of the most popular factory-made cigarette brands.

Findings

This study found evidence of an over-shifting of cigarette taxes on smokers. Specifically, it discovered that the tax increase is absorbed more by low-priced brand smokers compared to premium brand users due to (1) the limited increase in prices under a pure ad valorem system and (2) the way the Vietnamese currency is denominated. Additionally, there is evidence of cushioning to mitigate price shock on consumers as the real prices increase gradually over the period of one year after the tax change.

Originality/value

To the best of the authors’ knowledge, this study is the first to collect and analyze a unique panel micro-level data from three waves of a nationwide retailers’ survey, which captures the changes in marketing and pricing strategies of the tobacco industry in Vietnam before and after an increase in excise tax in 2019. The results of this study could be used as a reference for future policymakers in considering increasing taxes on tobacco.

Details

Fulbright Review of Economics and Policy, vol. 3 no. 2
Type: Research Article
ISSN: 2635-0173

Keywords

Open Access
Article
Publication date: 13 December 2019

Baoping Ren and Wei Jie

Constant or decreasing returns and increasing returns to scale are two kinds of mechanism in economic growth. The goal of supply-side structural reform is to promote the…

2021

Abstract

Purpose

Constant or decreasing returns and increasing returns to scale are two kinds of mechanism in economic growth. The goal of supply-side structural reform is to promote the establishment of the mechanism with increasing returns to scale. The paper aims to discuss this issue.

Design/methodology/approach

This paper argues that the overall economic structure of the developing economy has been divided into the sector of constant or decreasing returns to scale and the sector of increasing returns to scale due to the dual economic structure. Among them, the supply-side structural reform is mainly to reduce the sector of decreasing returns to scale and increase the sector of increasing returns to scale. Based on the hypothesis of such two-sector economic structure in the supply side of developing economies and on the industrial data, this paper empirically tests the returns to scale of China’s supply structure. The result suggests that so far the sector of constant or decreasing returns to scale dominates the supply structure of China’s economic growth, which results in the state of decreasing returns to scale in China’s overall economy.

Findings

Therefore, to realize the long-term sustained growth and transformation of the development pattern of China’s economy, the authors must carry out the supply-side structural reform, vigorously develop the modern industrial sectors characterized by modern knowledge and technology, and promote the development of an innovation-driven economy.

Originality/value

Besides, the authors must accelerate the transformation from traditional industrial sectors to modern industrial sectors, actively promote China’s industrial structure toward rationalization and high gradation, as well as build a modern industrial system so as to facilitate the formation of the mechanism of increasing returns to scale and accelerate the transformation of the driving force of China’s economic growth.

Details

China Political Economy, vol. 2 no. 2
Type: Research Article
ISSN: 2516-1652

Keywords

Open Access
Article
Publication date: 5 October 2022

Martin Botha, Merwe Oberholzer and Susanna Levina Middelberg

The purpose of this paper is to investigate current practices of water governance disclosure in the food, beverage and tobacco industry and to determine whether the quality of…

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Abstract

Purpose

The purpose of this paper is to investigate current practices of water governance disclosure in the food, beverage and tobacco industry and to determine whether the quality of disclosure has a positive association with integrated reporting (IR).

Design/methodology/approach

A water governance disclosure index was developed that used content analysis to code the latest standalone social, environmental and sustainability reports or integrated reports of 49 companies in the food, beverage and tobacco industry. The selected companies are listed on three indices, the ASX, JSE and DJSI. This was followed by quantitatively testing the association between IR and the quality of water governance disclosure, as measured against the qualitatively developed index.

Findings

It was found that the 18 IR companies’ water governance disclosure quality significantly outperformed the 31 companies in the non-IR group, with a calculated index score of 71.67% and 40.97%, respectively.

Research limitations/implications

The evidence indicates that IR is superior to non-IR water governance disclosure, and the study, therefore, contributes to the literature around the legitimacy theory by concluding that IR is supportive to companies to legitimise their being.

Originality/value

The originality of this paper stems from the comparison of water governance disclosures between IR and non-IR firms. Considering that IR preparers outperformed companies in the non-IR group could provide insights to academics, regulators and reporting organisations that IR could be used to enhance water governance disclosure.

Details

Meditari Accountancy Research, vol. 30 no. 7
Type: Research Article
ISSN: 2049-372X

Keywords

Open Access
Article
Publication date: 10 September 2020

Linda Sowoya, Chifundo Akamwaza, Austin Mathews Matola and Axel Klein

The purpose of this paper is to illustrate the opportunities for tobacco farmers in Malawi from diversifying to cannabis, and the potential benefits for reducing deforestation by…

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Abstract

Purpose

The purpose of this paper is to illustrate the opportunities for tobacco farmers in Malawi from diversifying to cannabis, and the potential benefits for reducing deforestation by producing a cannabis based alternative fuel. It further argues that there are tensions between the conflicting objectives of the Framework Convention on Tobacco Control and the Single Convention on Narcotic Drugs.

Design/methodology/approach

Field interviews were conducted with cannabis farmers, traders and sellers in different parts of Malawi.

Findings

The findings of this study show that there are opportunities for cannabis farmers but they have been blocked by legal impediments. Now that legislative reform have made cannabis cultivation possible, farmers need support in developing products.

Research limitations/implications

Any attempt to provide a precise assessment of the cannabis market in Malawi is constrained by the criminalised status of the product. The suitability of cannabis briquettes as an fuel has yet to be trialled in Malawi.

Social implications

There is an urgent need to revise the drug control conventions to address environmental degradation and deforestation.

Originality/value

The linkage between tobacco farming, deforestation and desertification in Malawi has not been made. This is the first time that hemp has been suggested as an alternative crop for farmers and as a solution to deforestation.

Details

Drugs and Alcohol Today, vol. 20 no. 3
Type: Research Article
ISSN: 1745-9265

Keywords

Open Access
Article
Publication date: 4 August 2021

Marewa Glover, Robin Shepherd, Kyro Selket and Saravana Kumar Paramanathen

A large increase in robberies of convenience stores in New Zealand (NZ) in 2016 and 2017 was anecdotally attributed to persistent and substantial increases in excise tax on tobacco

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Abstract

Purpose

A large increase in robberies of convenience stores in New Zealand (NZ) in 2016 and 2017 was anecdotally attributed to persistent and substantial increases in excise tax on tobacco products. This study aims to explore the validity of that claim by examining the characteristics of the robberies through the lens of online news coverage.

Design/methodology/approach

Google, Bing and main online NZ news outlets were searched for news reports between 2009 and 2018 of tobacco-related store robberies. Content analysis was used to extract characteristics such as date of robbery, type of store, items targeted or stolen and demographic profile of offenders. The prevalence of reported robberies by socioeconomic level of the surrounding community was assessed using nearest primary school decile rating. Descriptive statistics and statistical analysis were used to discuss trends and key findings in the data.

Findings

Reports on 572 robberies were unevenly distributed across the years with a large increase in 2016 and 2017, followed by a substantial decrease in 2018. Local community convenience stores were primarily hit – more so in lower socioeconomic communities. Robberies occurred nationwide and disproportionately so during colder months in lower socioeconomic communities. Many robberies were aggravated resulting in serious injury to shopkeepers. Tobacco and cash were predominantly targeted.

Social implications

The large increase in robberies that occurred in 2016–2017 likely resulted from tax-driven tobacco price hikes combined with reduced duty-free tobacco coming into NZ with travellers. Installation of security in stores, news fatigue and other explanations are potential reasons for the 2018 decrease in reported robberies despite tobacco prices increasing. Frequent robberies of local stores, many including violence, should be a public health concern as destruction of community well-being can be a determinant of other health problems. The negative consequences for communities, particularly lower socioeconomic communities, need to be factored into the cost benefit analysis of raising the tax on tobacco.

Originality/value

This study provides much needed detail on the negative health and social consequences of tobacco-related store robberies.

Details

Safer Communities, vol. 20 no. 3
Type: Research Article
ISSN: 1757-8043

Keywords

Open Access
Article
Publication date: 10 September 2020

Alexandra Solomon

This paper aims to provide a gendered analysis of the WHO Framework Convention on Tobacco Control (FCTC) benchmarked upon the global commitments to women’s health and well-being…

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Abstract

Purpose

This paper aims to provide a gendered analysis of the WHO Framework Convention on Tobacco Control (FCTC) benchmarked upon the global commitments to women’s health and well-being in the UN Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) and the Beijing Declaration and Platform for Action. It reviews evidence of the global consequences of neglecting women’s tobacco use and health, as well as analyzes persistent issues related to sex and gender that compromise the efficacy of tobacco control and science. Actionable recommendations are made to the Conference of the Parties to the FCTC and other key stakeholders.

Design/methodology/approach

This paper draws upon empirical studies, literature reviews and global health data at the varying intersections of gender, sex, tobacco and global health.

Findings

The global tobacco control framework and its implementation by state governments have been largely gender blind to date with dire health and economic consequences, including inequitable positive outcomes for men compared to women, and an increase in women’s smoking with associated morbidity and mortality. Gender equitable progress in combatting the tobacco epidemic will not be possible without resolving the gender bias, stigmatization, sexism and lack of intersectionality that plague tobacco control policy, research and interventions for cessation and harm reduction.

Originality/value

This paper provides an updated global overview of current trends in women’s tobacco use and comprehensively details the persistent structural barriers in tobacco control and science that limit their capacity to effectively analyze and address tobacco use and its impact on women.

Details

Drugs and Alcohol Today, vol. 20 no. 3
Type: Research Article
ISSN: 1745-9265

Keywords

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