Tim Lambert wrote a blogpost in 2004 (The Astroturf de Tocqueville Institute) showing the AdTI indeed started working with the tobacco industry in the 1990's.
The S. Fred Singer report
In 1994, late S. Fred Singer, best remembered as climate pseudo-skeptic, authored the Alexis de Tocqueville Institution report Science, Economics, and Environmental Policy: A Critical Examination. This report probably was ordered by the tobacco industry.
Early 1994, Cesar Conda, then president of the Alexis de Tocqueville Institution, had not decided yet who would author the paper (is not it lovely they already know what the report would conclude, without even knowing who would be the author?). Het wrote this remarkable letter:
The letter also shows the focus was no longer only to attack regulations on tobacco, other environmental subjects would be thrown under the bus too. And indeed, it is in the pool of different American extremist conservative industry funded think tanks that organized global warming denial would finds its roots.
The letter
summarizes the corruption of this think tank: fake report, fake endorsements,
wide press circulation. And all that for just $20.000
Clearly: this report was as corrupted as a report can be.
No, the report does not mention Tollison's connections with the tobacco industry, nor the fact the industry indeed paid the AdTI the $20.000 for the report
The industry wanted to use the report for lobbying, that much is certain
The report had the desired result. Samuel Chilcote, president of the Tobacco Institute reported
In 1995 the AdTI published another excise tax report, this time not by the economists though, but by John E. Berthoud, president of the National Tax Payers Union.
In 1998, the AdTI's draft report Tobacco Smuggling: A Worldwide Phenomenon was sent to the tobacco industry.