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The gap comes down to per-puff cost: disposables run several cents per puff, while refillable systems can drop under a penny per puff once you factor in bulk e-liquid and coil costs

The tax incidence on the consumers is given by the difference between the price paid Pc and the initial equilibrium price Pe

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Pankow JF, Watanabe K, Toccalino P, Luo W, Austin D (2007) Calculated cancer risks for conventional and potentially reduced exposure product cigarettes