According to a systematic review of studies of tobacco elasticities the average price elasticity for teenagers was -1.43 and -0.76 for young adults. As such, a 10% increase in tobacco price could be expected to decrease the tobacco consumption of teenagers by around 14%, and that of young adults by around 7.6%.
[1] http://documents.worldbank.org/curated/en/914041468176678949...
[2] http://onlinelibrary.wiley.com/doi/10.1002/hec.765/abstract
Or just listen to smokers complaining how they're a dying breed (works on two levels, that one), or how you can't just ask anyone for a light anymore as fewer people carry lighters, and how bumming a cigarette off a stranger is no longer commonplace now that cigs are over a buck each.
It really kills me that there seems to be a lot of lazy thinking around this subject. It has for a number of years, in fact. I hope this isn't taken as an 'appeal to authority' argument, but I'm an economist who has worked in tax policy for a number of years, during which time I actually advised a couple of Australian Prime Ministers and their Cabinets on excise tax. I'm not trying to be a contrarian here. If people know what is and is not effective, then they are in a better position to pressure their elected representatives to take effective measures to combat smoking.
Doing this makes you feel like an outsider to your own friendship group. I know the clubs complained bitterly that it lowered their revenue.
I would think that smokers (rightfully) feel like a shunned minority when they are told to smoke in alleys far away from the general population.
They have to make a special effort to go somewhere to smoke because they can no longer light up at a restaurant or while they're doing errands.
It's hard to pretend you're "cool" when you're standing by yourself and society doesn't want you anywhere near them.
So there's no coolness and no convenience.
As far as I am concerned, a cigarette tax should stand until proven harmful, not only if proven beneficial.