In reply to James Sanjaya Liauw’s post: Lets make a switch.

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James’s blog post is a very interesting one, it sheds some light on the most infamous and popular demerit good, cigarettes. He highlights an idea of cigarette companies (e.g. Phillip Morris) changing production of normal cigarettes to electronic cigarettes. This could work, only in a world where costs do not exist. The dramatic over haul of changing a complete line of production and produce new products will be way too expensive for any company. Even though corporate social responsibility is mentioned by James, cigarette companies are in for the profits and not looking out for consumers’ health problems.

I believe to tackle this issue properly, governments should raise the taxes on cigarettes even higher making them not as appealing. The biggest part however is given to the consumers.
21st century onward, consumers are having more and more choice. If more customers are educated about the negative impacts of smoking cigarettes, and more of them turn to electronic cigarettes made by other companies. The companies that produce cigarettes as of currently will have no choice but to change production to electronic cigarettes to meet consumer demands and earn profits again. Consumer choice is what drives a business to sell the products they are selling.

 

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