WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

Cigarette prices vary widely across Europe and are difficult to compare, not least because of brand availability and income differences. We have developed two indices (Marlboro-Water and Marlboro-Eggs), comparing the price of a well-known brand sold in 34 European countries to that of two widely used consumer goods to provide intuitive estimates of cigarette affordability. Our indices show that cigarettes tend to be most affordable in the South and the East of Europe, where tobacco taxes tend to be lower and smoking rates higher. By expressing the affordability of cigarettes relative to widely used consumer goods, this study aims to shed further light on the well-established links between tobacco taxes, prices and consumption, highlighting the benefits of policies that aim to reduce cigarette affordability.