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The study found increased cigarette prices due to taxes did not decrease smoking rates in people under 30, The Atlantic reports.

The researchers based their findings on data from the 2001-2006 Behavioral Risk Factor Surveillance System surveys, which included 1.3 million people. They found increases in state cigarette prices were associated with increases in current drinking among people ages 65 and older, and binge and heavy drinking among those ages 21 to 29. They found reductions in smoking among adults ages 30 to 64, drinking among those ages 18 to 20, and binge drinking among those 65 and older.

“Researchers, practitioners, advocates, and policymakers should work together to understand and prepare for these unintended consequences of tobacco taxation policy,” the researchers wrote in the journal Substance Abuse Treatment, Prevention, and Policy.
(Source: Join Together, 07/17/12)

Raising prices on alcohol and tobacco products through taxation is a proven strategy to stem their respective use. As nearly 25% of the U.S. population uses alcohol and cigarettes concurrently, it is important to know whether increasing cigarette prices may impact alcohol use–a ‘cross-price effect.‘
This study examines the effects of changes in state cigarette prices on current, binge, and heavy drinking patterns among demographic groups. Six years of cross sectional data are pooled from the 2001-2006 Behavioral Risk Factor Surveillance System surveys (BRFSS), a nationally representative household telephone survey conducted annually with random samples of adults 18 years of age and older.
Preliminary findings indicate that each $1 increase in cigarette price is associated with an 8% increase in the predicted odds of drinking in the past month (p< .05) and a 7% increase in heavy drinking (p<.1). For binge drinking there was no significant effect in preliminary analyses. ... Source: Alcohol Reports, 12/17/10)