Clean Indoor Air Laws and cigarette demand: Restrictions versus enforcement

This paper investigates the impact of Clean Indoor Air Laws on the demand for cigarettes. Utilizing recently published ratings of State Clean Indoor Air Laws, which account for restrictions on the locations of permissible smoking, as well as enforcement and penalties, the results show that demand falls as smoking restrictions are elevated. However, enforcement and penalties have little impact on cigarette demand. Given the social pressures attached to smoking, these results are consistent with Clean Indoor Air Laws being self-enforcing.