CONTROL POLICIES TO COMBAT THE HEALTH RISKS FROM SMOKING AND PASSIVE SMOKING

Good information is necessary for markets to allocate resources efficiently. Tobacco is a demerit good; smoking endangers smokers but also exerts externalities on non-smokers. Public policies, however, foster misinformation, are contradictory and damage public health. Current policies also deny feedback from the tobacco industry and reduce consumer information about tobacco products that could substantially reduce the harmful effects of smoking.