Economic Evaluation of Health Canada's Regulatory Proposal for Reducing Fire Risks from Cigarettes

Table of Contents

• Regulatory Impact Analysis Statement for the Proposed Cigarette Ignition Propensity Regulations and proposed Regulations Amending the Tobacco Reporting Regulations
• 1.0 Introduction and Summary
• 2.0 The Canadian Tobacco Industry
  • 2.1 Introduction
  • 2.2 Industry Structure
    • 2.2.1 Tobacco Growers
    • 2.2.2 Tobacco Marketing Boards
    • 2.2.3 Other Suppliers
    • 2.2.4 Cigarette Manufacturers
    • 2.2.5 Distributors and Retailers
    • 2.2.6 Importers
    • 2.2.7 Market Trends
  • 2.3 Manufacturing Costs
• 3.0 Compliance with a Cigarette Ignition Propensity Standard
  • 3.1 Introduction
  • 3.2 Compliance Options
  • 3.3 Banded Paper
• 4.0 Costs of Compliance with the Proposed Cigarette Ignition Propensity Regulations
  • 4.1 Introduction
  • 4.2 Modelled Cost Estimate
  • 4.3 Industry-based Cost Estimates
    • 4.3.1 Industry Outreach Questionnaire
    • 4.3.2 Industry Responses
  • 4.4 Total Costs
    • 4.4.1 Annual Costs
    • 4.4.2 Present Value of Costs
• 5.0 Benefits of a Cigarette Ignition Propensity Standard
  • 5.1 Introduction
  • 5.2 Fire Losses In The Absence Of An Ignition Propensity Standard
    • 5.2.1 National Fire and Fire Loss Data: Smoker's Article Fires
    • 5.2.2 Provincial Fire and Fire Loss Data: Fires Caused by Cigarettes
    • 5.2.3 Baseline Fire Loss Estimates - Fires Caused by Manufactured Cigarettes
    • 5.2.4 Characterisation of Injuries Associated with Cigarette-Related Fires
  • 5.3 Estimated Effect of the Proposed Ignition Propensity Standard on Fire Losses
  • 5.4 Valuing the Beneficial Impacts of the Standard
    • 5.4.1 Fatalities
    • 5.4.2 Injuries
  • 5.5 Total Benefits
    • 5.5.1 Annual Benefits
    • 5.5.2 Present Value of Benefits
  • 5.6 Summary
• 6.0 Sensitivity and Uncertainty Analysis
  • 6.1 Introduction
  • 6.2 Discount Rate Sensitivity Analysis
  • 6.3 Value of Statistical Life Sensitivity Analysis
• 7.0 Economic and Distributional Impacts of an Ignition Propensity Standard
  • 7.1 Introduction
  • 7.2 Impacts on Cigarette Manufacturers, Prices, and Sales
  • 7.3 Impacts on Cigarette Manufacturing Suppliers
    • 7.3.1 Tobacco Growers
    • 7.3.2 Paper Suppliers
  • 7.4 Impacts on Distributors, Retailers, and Importers
  • 7.5 Impacts on Cigarette Exports
  • 7.6 Impacts on Excise Tax Revenues
  • 7.7 Impacts on Employment
  • 7.8 Impacts on Consumer Expenditures
  • 7.9 Distribution of Benefits
• 8.0 Appendix
  • Appendix A : Baseline Cost Structure of a Representative Cigarette Manufacturer
  • Appendix B : Industry Outreach Questionnaires
  • Appendix C : Estimated Incremental Cost of a Paper Modification
  • Appendix D : Health Care Cost Values
• 9.0 Bibliography