Regulation of Tobacco Consumption and Policy Challenges in Georgia

Abstract

In recent years, tobacco regulation is one of the most important issues in state policy from economist point of a view. As contemporary recognized, tobacco products are addictive goodsand, as other similar goods (alcohol, drugs), the demand for them is characterized by low elasticity. However, the change (increase) in prices will still affect consumption decline. The degree of decline depends on a variety of factors, including age, income, consumption intensity, standard of living or time perspective. Therefore, when designing and implementing policies, it is particularly important to determine types of consumers to whom the results of regulations are mostly effective.