Raising vaping taxes reduces teen nicotine use – for some
A new study shows price-based interventions don't work as well for LGBQ youth
HIGHLIGHTS
- Thirty U.S. states and numerous local municipalities have implemented excise taxes on e-cigarettes to curb teen consumption.
- Applying an economic solution to reduce teen vaping did not significantly reduce use in all teens.
- Raising taxes on e-cigarettes is a well-intentioned effort to protect the next generation, but the research shows it is not a blanket solution.
Over the past decade, as youth e-cigarette use reached what the Surgeon General labeled epidemic proportions, at least 30 U.S. states and numerous local municipalities have implemented excise taxes on electronic nicotine delivery systems (ENDS) to curb consumption.
In 2024, 3.5% of middle school students and 7.8% high school students, more than 1.6 million U.S. youth, reported using e-cigarettes.
Research on “E-Cigarette Taxation and Queer Youth” by Wake Forest Associate Professor of Economics Erik Nesson and a team of national collaborators indicates that applying an economic solution to reduce teen vaping did not significantly reduce ENDS use in all teens. While heterosexual youth decreased their vaping, lesbian, gay, bisexual and questioning (LGBQ) youth did not.*
Research and results
The findings indicated that while LGBQ youth vape at rates over 30% higher than their straight peers, they respond very differently to increases in e-cigarette taxes.
A one-dollar tax increase on e-cigarettes successfully reduced prior-month vaping among heterosexual youth by 3 to 4 percentage points. For LGBQ teens, however, that same tax failed to move the needle, leaving usage rates essentially unchanged.
The data suggests a clear reason for this divide: For many LGBQ youth, nicotine serves as a coping mechanism for stressors like bullying or isolation. Because they are using the products to manage emotional struggles, a price increase isn’t enough to make them quit.
For their research, the team relied on data covering the years of 2015 to 2023 from the Youth Risk Behavior Survey—a nationally representative dataset managed by the CDC that specifically asks high school students about a range of health behaviors, including e-cigarette use and stressors.
“We found that for LGBQ youth who did not report bullying or sadness, the taxes reduce vaping to a similar degree as among heterosexual youth. However, for LGBQ youth who self-reported struggles, the tax had no statistically significant effect on vaping,” said Nesson.
Moving forward
While raising taxes on e-cigarettes is a well-intentioned effort to protect the next generation from nicotine use, the research shows it is not a blanket solution, particularly for youth who reported signs of stress.
“Our results suggest that policymakers need to be aware that increasing the cost of nicotine products may not yield uniform results and, in fact, may be less effective with LGBQ youth who are struggling,” Nesson said. “And this is important to consider when trying to develop the right mix of tobacco control policies to curb use among teens.”
* Note on terminology: This research utilizes the term LGBQ (lesbian, gay, bisexual, and questioning) to reflect the specific categories available in the CDC’s Youth Risk Behavior Survey during the study period.
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