Taxing E-Cigarettes Reduced Teen Marijuana Use, Suggesting the Two Are Complements
A one-dollar increase in e-cigarette taxes was associated with a 1.0 to 1.5 percentage point decline in teen marijuana use, indicating e-cigarettes and marijuana are economic complements rather than substitutes.
Quick Facts
What This Study Found
ENDS taxes reduced both teen e-cigarette use and marijuana use, including co-use. A one-dollar increase in ENDS taxes was associated with 1.0-1.5 percentage point decline in teen marijuana use. No effect was found on use of cocaine, methamphetamine, opioids, or drug treatment admissions. The effects appeared to moderate over time.
Key Numbers
A $1 ENDS tax increase (2023 dollars): 1.0-1.5 percentage point decline in teen marijuana use. Effects moderate over the longer term. No spillover to cocaine, methamphetamine, or opioids.
How They Did This
Difference-in-differences and event-study analysis of YRBSS, BRFSS, and Treatment Episode Data Set data examining effects of state-level ENDS tax policies on substance use.
Why This Research Matters
The gateway hypothesis has long debated whether vaping leads to other substance use. This economic evidence suggests e-cigarettes and marijuana are used together, so policies reducing one also reduce the other.
The Bigger Picture
This finding has significant policy implications: e-cigarette taxation may have unintended positive effects on marijuana use among teens. It also suggests that youth vaping and marijuana use share common drivers.
What This Study Doesn't Tell Us
Observational policy analysis cannot fully rule out confounders. Tax effects may vary by state context. YRBSS self-reported data. Effects appeared to weaken over time, suggesting adaptation.
Questions This Raises
- ?Are teens using the same devices for nicotine and cannabis?
- ?Would marijuana taxes similarly reduce e-cigarette use?
- ?Why do the effects moderate over time?
Trust & Context
- Key Stat:
- $1 ENDS tax increase linked to 1.0-1.5 percentage point drop in teen marijuana use
- Evidence Grade:
- Rigorous quasi-experimental design using multiple data sources; moderate because of observational limitations and effect moderation over time.
- Study Age:
- 2025 publication analyzing state-level tax policy data
- Original Title:
- The Effect of E-Cigarette Taxes on Substance Use.
- Published In:
- Journal of health economics, 102, 103022 (2025)
- Authors:
- Dave, Dhaval, Liang, Yang, Maclean, Johanna Catherine(2), Muratori, Caterina, Sabia, Joseph J
- Database ID:
- RTHC-06299
Evidence Hierarchy
Watches what happens naturally without intervening.
What do these levels mean? →Frequently Asked Questions
What does it mean that e-cigarettes and marijuana are "complements"?
In economics, complements are products that tend to be used together. If taxing e-cigarettes reduces both e-cigarette AND marijuana use, it suggests teens who vape nicotine are also using marijuana, and reducing one reduces the other.
Does this mean vaping causes marijuana use?
Not necessarily. The complement relationship means they are used together, but both could be driven by common factors like peer groups, risk tolerance, or access. The key finding is that reducing vaping access appears to also reduce marijuana use.
Read More on RethinkTHC
Cite This Study
https://rethinkthc.com/research/RTHC-06299APA
Dave, Dhaval; Liang, Yang; Maclean, Johanna Catherine; Muratori, Caterina; Sabia, Joseph J. (2025). The Effect of E-Cigarette Taxes on Substance Use.. Journal of health economics, 102, 103022. https://doi.org/10.1016/j.jhealeco.2025.103022
MLA
Dave, Dhaval, et al. "The Effect of E-Cigarette Taxes on Substance Use.." Journal of health economics, 2025. https://doi.org/10.1016/j.jhealeco.2025.103022
RethinkTHC
RethinkTHC Research Database. "The Effect of E-Cigarette Taxes on Substance Use." RTHC-06299. Retrieved from https://rethinkthc.com/research/dave-2025-the-effect-of-ecigarette
Access the Original Study
Study data sourced from PubMed, a service of the U.S. National Library of Medicine, National Institutes of Health.
This study breakdown was produced by the RethinkTHC research team. We analyze and report published research findings without making health recommendations. All interpretations are based solely on the published abstract and study data.