Many Countries Have Recently Imposed A Ban On Smoking In Public Areas, Including Restaurants And Bars

1988 words - 8 pages

Many countries have recently imposed a ban on smoking in public areas, including restaurants and bars.

Discuss whether an outright ban is necessarily superior to either a Pigovian or Coasian solution to the externalities created by smoking in public places.


Partial smoking bans have become increasingly popular in Western democracies in recent years and tend to revolve around the banning of smoking in public areas. This essay will explore economic arguments and solutions relating to the externalities caused by smoking. The central problem at the heart of this issue is the over-consumption of cigarettes and the problem that the externalities of smoking cause for the general ...view middle of the document...

285; Johnsen et al, 1981). However, some economists have preferred to replace the notion of externalities with the term “external effects” and this idea refers specifically to the social costs and benefits of either a public or private enterprise rather than focusing upon the effect of externalities from a financial perspective (Thomas 2010: p.62; Sandmo, 1975). Examples of negative externalities include pollution from road transport, litter in public places, noise pollution and externalities related to alcohol and smoking consumption (Stone, 2008). In such situations, what is known as the marginal social benefit of consumption (SMB) is less than the marginal private benefit of consumption (PMB) (Morris et al 2007: p.127). The diagram below illustrates this situation.

Fig. 2 – SMB < PMB (12Tamito’s Blog, 2013).

This type of situation creates a problem in which a particular good or service can be consumed at a greater level than would optimally be the case (Mankiw 2011: p.199). The consequence of this is that effectively the service or product in question is not priced at the correct level, because it is not priced high enough and the cost of the negative externalities relating to the product or service are not reflected in the price (Pigram & Jenkins 2013: p.172).

Pigovian and Coasian solutions to externalities

The Pigovian approach places the onus upon the generator of the externality (Hartman, 1997). In order to remedy the problems arising from externalities the Pigovian framework imposes a tax upon the externality as its favoured policy prescription (Hartman, 1997). As the above analysis has shown, in a context in which externalities lead to an inefficient market in which a product or good can be over-consumed, the Pigovian solution advocates the implementation of a tax to correct the market and to ensure that the cost of externality is placed upon the individual or collectivity responsible for causing the externality (Lai, 2011). In contrast, the Coasian solution to externalities has as its fundamental assumption the idea that externalities are reciprocal in nature. In other words, both the polluter and the poluttee are seen as being responsible for the externality (Schotter, 2008; Hartman, 1997). The Coasian framework places the emphasis from a policy perspective upon bargaining and it suggests that legal rules and institutions should change in order to absorb the impact of the externality in question (Schotter, 2008). The logic underlying the Coasian solution is relatively simple, because it claims that if the market is leading to an inefficient outcome then there must be another outcome that can ensure that at least one of the parties will be better off as a result (Schotter, 2008). A Coasian framework ensures that the market will be able to navigate the costs of externalities via bargaining, as long as property rights are clearly defined (Schotter, 2008; Hartman, 1997).

The smoking ban

In order to understand a Coasian solution...

Other Papers Like Many Countries Have Recently Imposed a Ban on Smoking in Public Areas, Including Restaurants and Bars

Smoking in Public Essay

1189 words - 5 pages benefit, as well. As of now, it is possible to prove that smoking bans not only work to protect nonsmokers from the death and disease caused by exposure to secondhand smoke, but also have an immediate effect on the publics health. A recent study confirmed that restaurants and bars located in the cities that have banned smoking in public areas, have 82% less (indoor) air pollution than restaurants and bars in the cities that do not have a public

Smoking Ban Law In New York State

1015 words - 5 pages "Smoking or not smoking" is always the first question that we all heard in a restaurant. Thanks to New York Mayor Michael R. Bloomberg and Gov. George Pataki that will not longer be true in the state of New York. On March 31, 2003 at 11:59 was the last day to enjoy a cigarette inside restaurants, taverns, bars, and private clubs.It started a few years ago like a local movement applied just in "The City". Now the Smoke-Free Air Act had become a

America Needs A Complete Smoking Ban

1484 words - 6 pages States of America have already banned smoking publicly, and even a few countries are pushing for a federal ban. America is moving towards a uniform set of laws that would prohibit smoking in public where another person is exposed unwillingly to secondhand smoke. Step by step the campaign for a complete ban is mulling over. Nicotine dependence in children is not uncommon. Studies show that children exposed to smoke inhalation unwillingly, develop

Smoking In Public Places

578 words - 3 pages can’t find it again? With so many accusations on cigarettes, and with all of these independent researchers coming out with all of their data, how can this possibly be wrong? The simple fact remains that there are unknown truths about the tobacco industry.      It is always known that death is a certainty in life, and suicide is a way of death. But does that make it right? It has since been proven by the tobacco industry

Banninn Smoking in Public Facilities

699 words - 3 pages ago, when smoking became a fad and everyone was doing it, no one understood the unhealthy nature of the habit. The farmers and larger tobacco companies were advertising everywhere and consumers were buying it up, causing the large tobacco companies to make big money. Now that research has been done to prove that smoking kills, the government has put a ban on advertising in certain areas and demanded cigarettes be labeled with the Surgeon General

Banning Smoking in Public Places

524 words - 3 pages Banning Smoking In Public Places People should not be given the privilege to smoke in public places. I have the right to walk down the street or sit in a restaurant and not be a victim of second hand smoke. The 2006 report of the U.S. Surgeon General noted that the only way to protect non-smokers from the dangerous chemicals in second-hand smoke is to eliminate smoking indoors. Thus, smoking in common areas has become a sensitive and large

Child Labour: Tolerated in Many Poor Countries

703 words - 3 pages During the Industrial Revolution, children as young as four were employed in production factories with dangerous, and often fatal, working conditions.[5] Based on this understanding of the use of children as labourers, it is now considered by wealthy countries to be a human rights violation, and is outlawed, while some poorer countries may allow or tolerate child labour. Child labour can also be defined as the full-time employment of children

Increase Uptake Of Smoking Cessation Services In Deprived Areas

2597 words - 11 pages evidence of effectiveness of telephone help lines. ‘Low income earners may not be able to afford some quit smoking methods such as nicotine replacement therapies, but helpline services which have a free call number are accessible to all’. (Pierce JP, Anderson DM). This study is supported by smoking cessation study done in California. This study emphasizes on one of the attractive qualities of telephone help lines. Smokers who live in rural areas

The Effect of External Public Debt in Developing Countries on Economic Growth - an Empirical Study on Argentina

3711 words - 15 pages P.21 1. Introduction In principle, borrowing external source of fund is beneficial to long term development; however, the empirical data on Latin-American, African and some East Asian countries have shown a negative relationship with increasing debt and economic growth. To attain a sustainable economic growth for underdeveloped countries (UDC), it is important to reinvestigate whether

A Consideration of Public Policy to Reduce Smoking

1023 words - 5 pages feel that they have no choice but to pay. Perhaps a better method for reducing the number of smokers would be to increase the price less and make up for this by banning smoking in public places, banning tobacco advertising within the community (including sporting events and billboards etc.) and increasing awareness as to just how much smoking really does harm your body. Bibliography

"The Silent Killer." What Are The Dangers And Effects Of Smoking? How Did Smoking Get Started? The Effects Smoking Has On Teens And More Are In This Essay

1399 words - 6 pages drinking alcohol, driving recklessly (without a seatbelt), trying other deadly drugs like heroine, and unhealthy eating habits.Why do so many young people start smoking?There are many factors involved, but there are two things that have the biggest affect. The first is peer pressure. Many teens are willing to do anything to fit in; including risking their own lives. The second is the advertisement from the cigarette companies. Over $10 million a day is

Related Essays

What Effects Did The 2006/2007 Smoking Ban Have On The Uk Public House Industry If Any?

1741 words - 7 pages What effects did the 2006/2007 smoking ban have on the UK public house industry if any? Introduction The following is a report that aims to answer the question ‘What effects did the 2006/2007 smoking ban have on the UK public house industry if any?’ Reaching a thorough well rounded answer that will be developed in the conclusion is the key aim of this investigation. The intention of this report is to include

Dangers Of Second Hand Smoke: Shoud Smoking In Public Areas Be Permitted?

1623 words - 7 pages stop their smoking, ask them, and visitors, to smoke outside of your home. The third thing you can do is Do not allow smoking in your car. And the final thing you can do is to make sure your school or your children’s school is smoke free. In fact many restaurants, work offices, and public areas prohibit smoking in their building areas. If only there were a law that stopped smoking all together millions of lives would be saved and you wouldn’t

This Is An Exemplification Essay About Laws Which I Disagree With Including: The Smoking Ban, The Cell Phone Ban While Driving, And The Drinking Age Which Should Not Be 21

648 words - 3 pages nation. Every year new laws get passed that are intrusions on our daily lives.One law, which I strongly disagree with, is the smoking ban. New York residence can no longer smoke in bars, restaurants, offices and covered outdoor patios. The government should not have the right to tell independent businesses how to operate. Although second hand smoke is harmful, it is my choice to go to a place where smoking is permitted. People go to a bar to relax

Many Of The Fears That The Government And Media Have Fed To The Public Are Unfounded

917 words - 4 pages Many of the fears that the government and media have fed to the public are unfounded. After interviewing several of my family and friends about their opinions on the topic of Asylum seekers in Australia, there seemed to be several specific concerns that these people had regarding asylum seekers. When I asked them where they had heard about these potential problems, the two main sources they gave were that they heard it on the news or it was