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Showing posts from June, 2025

Australia’s Vaping Policy Failure: Fueling the Tobacco Black Market

Australia’s Vaping Policy Failure: Fueling the Tobacco Black Market 🚭 Australia’s Vaping Policy Failure: Fueling the Tobacco Black Market By: Kieran Kelly | Published: June 27, 2025 Australia’s hardline stance on vaping—marked by prescription-only access and heavy restrictions—was intended to protect public health. But in practice, it’s done the opposite. This article explores how the government’s policy has inadvertently strengthened the illicit tobacco trade , undermined harm reduction, and missed a critical opportunity to modernize public health strategy. 📉 The Policy Problem: Overregulation Without Alternatives Australia’s vaping laws are among the strictest in the world. While traditional cigarettes remain widely available, nicotine vapes require a doctor’s prescription. This mismatch has created a regulatory vacuum—one that the black market has eagerly filled. Legal cigarettes: Available at every corner store....

Economics of Australia’s black market for tobacco

The Economics of Australia's Tobacco Black Market 🚬 The Economics of Australia's Tobacco Black Market—And Why Vaping May Be the Answer Published by: Kieran Kelly | Date: June 27, 2025 Australia's high tobacco taxes are meant to curb smoking—but they've also driven a thriving black market. As authorities tighten regulations, are we ignoring a cleaner, more effective economic alternative? This post explores how basic economic theory explains the rise of illicit tobacco and argues why vaping could be a practical solution . 🔍 How High Taxes Fuel Black Market Trade 📈 Tax Incidence & Deadweight Loss Smokers have inelastic demand : they’re less responsive to price changes due to addiction. With steep taxes, consumers—not producers—shoulder most of the cost. This creates deadweight loss , reducing legal trades that would benefit both buyers and sellers. 💸 The Incentive for Smuggling The gap between l...

Clearing the Air: The Case for a Regulated Vaping Market

As Australia tightens its grip on vaping regulations, a growing chorus of public health experts and harm reduction advocates are urging policymakers to reconsider the potential benefits of a regulated vaping market. While concerns about youth access and nicotine addiction are valid, some argue that the current prohibitionist approach may be doing more harm than good. Dr. Colin Mendelsohn, a leading Australian tobacco harm reduction expert, has long criticized what he calls a “media-generated moral panic” around vaping. In his analysis, he highlights how sensationalist reporting has skewed public perception and led to reactionary policies that overlook the role vaping can play in helping adult smokers quit combustible tobacco—a product that still kills over 20,000 Australians annually. Groups like the Australian Tobacco Harm Reduction Association (ATHRA) have pointed to New Zealand as a model. There, a regulated retail market for vaping products has coincided with a decline in smoki...