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De-Merit Goods - Australia to ban recreational vaping

Graham Watson

3rd May 2023

Australia is looking to ban recreational vaping, believing vaping amongst the young to be a gateway drug, rather than a way of weaning people off cigarettes. As a result, vaping is going to be ban unless it is so-called prescription vaping. However, is this good economics?

There's a large number of people who argue that in reducing the availability of a substitute, this will only serve to encourage smoking, that it will encourage the emergence of a shadow economy and that it will be hard to police, and thus have a high opportunity cost.

De-Merit Goods - Australia to ban recreational vaping

Australia has banned recreational vaping and tightened other e-cigarette laws in a huge crackdown on the tobacco industry as it tries to stop the rise in teenage vaping.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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