Your example shows the most simple way of passing PHP variables to JavaScript. You can also use json_encode for more complex things like arrays:
<?php
$simple = 'simple string';
$complex = array('more', 'complex', 'object', array('foo', 'bar'));
?>
<script type="text/javascript">
var simple = '<?php echo $simple; ?>';
var complex = <?php echo json_encode($complex); ?>;
</script>
Other than that, if you really want to "interact" between PHP and JavaScript you should use Ajax.
Using cookies for this is a very unsafe and unreliable way, as they are stored clientside and therefore open for any manipulation or won't even get accepted/saved. Don't use them for this type of interaction.
jQuery.ajax is a good start IMHO.
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