This paper examines some determinants of the demand for tobacco produc
ts among teenagers. Some important factors include income, habit, soci
al images and health information. However, the results suggest that th
e real price of tobacco products is the main determinant of such deman
d. Evidence on the influence of tobacco product advertising and tobacc
o product advertising bans is mixed. Since tobacco product is price el
astic for teenagers there is discussion on the role of increased tobac
co taxation (hence increased tobacco product prices) at both the Feder
al and State level in Australia as meeting the requirements of a sumpt
uary tax. As well, other avenues for reducing teenager smoking partici
pation rates such as restricting supply and availability are discussed
as part of a comprehensive anti-smoking campaign.