The Joint Demand for Alcohol, Cigarette and Marijuana: Evidence from South West Zone, Nigeria

Abstract

Alcohol, cigarette and marijuana consumption is prevalent among youths and could lead to addiction and abuse. The consumption of these three goods imposes significant costs on society through its negative impact on health, crime, health expenditure and productivity. Evidence from past studies had shown that some alcohol users and cigarette smokers had tried marijuana. However, the optimal consumption of alcohol, cigarette and marijuana, and their interdependence raise critical questions on whether alcohol, cigarette, and marijuana are complements or substitutes. This study, therefore, examined the joint demand for alcohol, cigarette, and marijuana in Ibadan, South West Zone, Nigeria. The study is anchored on Consumer Theory. Motor parks, market places, and beer parlors across Ibadan North and Ibadan West Local Government Areas were selected based on the relative prevalence of alcohol, cigarette, and marijuana consumption in Ibadan metropolis. Thereafter, a purposive sampling technique was used to administer a structured questionnaire and select 251 respondents. Estimation procedure utilized a sequential three stage hurdles model of consumer decisions: the decision to consume alcohol, cigarette or marijuana; budget share of the consumer; and decision to quit consumption. While the first and third hurdles were estimated using the probit technique, the second hurdle was estimated using Ordinary Least Square (OLS) method. Statistical significance was at p ≤0.05. Cigarette and marijuana were found to be substitutes (0.26), alcohol and cigarette demand, as well as alcohol and marijuana demand, were found to be independently demanded as there was no significant relationship among them.

Presenters

Olumide Bamidele Owoeye
Lecturer I, Department of Economics, McPherson University, Ogun, Nigeria

Details

Presentation Type

Paper Presentation in a Themed Session

Theme

Public Health Policies and Practices

KEYWORDS

Alcohol, Cigarette, Marijuana, Consumer decision, Ibadan Metropolis Nigeria

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