REEP’s aspiration is to positively impact the world by producing and disseminating rigorous and independent research. According to the WHO, tobacco use is responsible for 8 million premature deaths each year, worldwide. These deaths are preventable. The single most effective measure to reduce tobacco use is to increase tobacco excise taxes. This would reduce the health and economic costs associated with tobacco use, such as the mortality and morbidity burden on smokers and the people who live with them.

Background

From 2011 to June 2019, the group functioned as the Economics of Tobacco Control Project (ETCP), housed in the Southern Africa Labour and Development Research Unit (SALDRU). At the outset, the focus of the ETCP was mainly on the economics of tobacco control. Since about 2014, the ETCP expanded its research into a broader range of excisable products, including alcohol and sugar-sweetened beverages (SSBs).

A long-held ambition was realised in July 2019, when the ETCP was officially accredited as a research unit by UCT’s University Research Committee, with a new name: the Research Unit on the Economics of Excisable Products (REEP). The name of the unit was chosen to indicate that its research focus aims to extend to all health-related excisable products. (Note: Petroleum products, some luxury goods and plastic bags are also subject to excise taxes, but these are not in REEP’s area of research). REEP’s research focus in the tobacco-control domain is largely on tobacco taxation and tax systems. Since 2010, the illicit trade in tobacco products has become a major issue worldwide, and especially in South Africa. In response, REEP has conducted many studies on the illicit trade in tobacco products.

In addition to research on tobacco, in the past five years REEP has increasingly turned its attention to investigating the economic aspects of both alcohol and sugar-sweetened beverage consumption and related policy responses. Like tobacco, alcohol and sugar-sweetened beverage consumption contribute to the growing prevalence of non-communicable diseases worldwide. REEP’s work on SSBs is primarily focused on South Africa but is increasingly extending to other African countries. SSBs have been subject to excise tax in South Africa since 2018.

Since 2022, REEP researchers have also been researching novel nicotine products, including heated tobacco products and e-cigarettes, as these products have become increasingly popular in many countries, including South Africa. Our research footprint in novel nicotine products was greatly expanded in March 2024, when Dr Estelle Dauchy joined the REEP team as a Principal Research Officer.

We have published a paper on the demand for cannabis. Even though cannabis is currently not subject to excise taxes, we foresee that this could happen at some point in the future.

REEP has two main focus areas: the first is its academic work; the second is to support tax policymaking. 

Nearly all of REEP’s research is informed by the challenges that arise in the real world. Most of our research has strong policy applications. As such, the distinction between “academic research” and “policy-related research” is sometimes blurred, yet complementary.

REEP's academic work develops its reputation and provides credibility for researchers to speak with authority about economic issues related to excise taxation – including illicit trade – in policy circles and policy-setting environments. Applying a policy lens to our academic research also makes our research relevant, especially because in many countries the prevalence of smoking is still high, novel nicotine products are initiated at younger ages, and most tobacco users eventually regret that they started using tobacco and want to quit.The interaction with policy makers also alerts REEP staff to research opportunities that are relevant and in demand. Most of our research has a strong policy focus, aimed at addressing critical and timely policy issues as they arise.

  • REEP’s academic work includes conducting research, writing and publishing papers in peer-reviewed journals, supervising students and postdoctoral fellows, data collection, and academic capacity building. This work has been the mainstay of the unit (and its predecessor, the ETCP) since its inception.

  • REEPs policy support activities and outputs include supporting government officials in improving excise tax systems, providing motivation for tax increases, providing in-country technical assistance, and running workshops for government officials. This work is typically done under the banner of the World Health Organization’s Framework Convention on Tobacco Control (WHO FCTC) Knowledge Hub on Tobacco Taxation. The Knowledge Hub provides support and guidance to governments that have ratified the WHO FCTC to implement better tobacco excise-tax systems and/or higher tax rates. Policy-related research can take the form of reports, policy briefs, submissions to government committees, articles in the popular/non-academic press, etc.