Public-place smoking laws and exposure to environmental tobacco smoke (ETS). Am Econ J Econ Policy 2011;3:35–61

Public-place smoking restrictions are the most important non-price tobacco control measures worldwide, yet surprisingly little is known about their effects on exposure to environmental tobacco smoke (ETS). We study these laws in Canada using data with questions about respondents ’ ETS exposure in public and private places. In fixed-effects models we find these laws had no effects on smoking but induced large and statistically significant reductions in public-place ETS exposure, especially in bars and restaurants. We do not find significant evidence of ETS displacement to private homes. Our results indicate wide latitude for health improvements from banning smoking in public places. (JEL I1) Environmental tobacco smoke (ETS) is estimated to kill 600,000 people worldwide each year through increased heart disease, respiratory ailments, asthma, and lung cancer (Mattias Oberg et al. 2011).2 Reducing population exposure to ETS is a key public health priority of many governments, and increasingly cites and countries have been adopting clean indoor air policies that restrict or completely prohibit smoking in a variety of public places such as restaurants and bars (EPHA 2010). Indeed, research based on a recent World Bank repor