ISR Awards

The Economic Impact of Michigan’s Dr. Ron Davis Smoke-Free Indoor Air Quality Law: A Report to the Michigan State Department of Community Health

In December of 2009, Michigan amended its clean indoor air law to ban
smoking in workplaces including bars and restaurants. The ban took effect
on May 1, 2010 amid widespread concern among bar and restaurant owners that
the ban would be bad for business. Evidence from other states and
localities suggests that smoking bans have no impact on economic outcomes
(Eriksen and Chaloupka 2007). Studies using subjective measures such as
sales figures reported for tax purposes or employment reported to
government agencies are much more likely to find that bans have no impact
than are studies using subjective outcomes such as restaurant owners?
reports of how their business would be affected or was affected by a ban
(Scollo, Lal, Hyland and Glantz 2003).

This report will present an analysis of aggregate data for the state of
Michigan from 2006 to 2011 to see whether restaurant and bar sales were
lower after the ban took effect than would have expected based on the
historical trend. The report will also analyze the impact of the ban on
cigarette sales and sales of Club Keno cards.