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Trends in Organized Crime

, Volume 13, Issue 4, pp 299–315 | Cite as

A mountain or a molehill: is the illicit trade in cigarettes undermining tobacco control policy in South Africa?

  • Evan Blecher
Article

Abstract

This study estimates the size of the market for illicit cigarettes in South Africa between 1997 and 2007 in order to consider the impact of the illicit trade in cigarettes on the effectiveness of tobacco control policies. Estimates of the illicit market are made using data on smoking prevalence and simulations of smoking intensity. The paper shows that the size of the illicit market to have grown substantially from 1997 until peaking in 2000 between 9.4% and 11.5% of the total market. The most recent estimate for 2007 suggests that the illicit market occupied between 7.0% and 11.2% of the total market. These estimates are significantly lower than the anecdotal claims of the tobacco industry. Although the scale of the illicit market is significant it has not undermined tobacco control policy. Consumption in the total market, including both the illicit and legal market, has declined in size consistently. At the same time, tax revenue from higher excise taxes has offset the tax losses as a result of illicit trade.

Keywords

Cigarette smuggling Illicit trade Tobacco control 

Notes

Acknowledgments

I would like to thank Corné van Walbeek, Hana Ross, Luk Joosens, Jonny Steinberg, Antony Altbeker, David Merriman, Klaus von Lampe and an anonymous reviewer for the comments and suggestions and Claire Milne from the South African Advertising Research Foundation for assistance in sourcing the AMPS data. All errors and omissions remain the author’s alone.

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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.American Cancer SocietyAtlantaUSA

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