2007 Johns Hopkins Bloomberg School of Public Health

Introduction to Tobacco-Control EconomicsIntroduction to Tobacco-Control Economics

Hugh Waters, PhDJohns Hopkins Bloomberg School of Public Health

2007 Johns Hopkins Bloomberg School of Public Health

Section ASection A

Introduction

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Importance of Economics

Cost of smoking

Response of demand to taxes and price

Supply of tobacco

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Some Topics We’ll Explore

Introduction to tobacco-control economics Dr. Hugh Waters, Johns Hopkins Bloomberg

School of Public Health

Tobacco taxation Frank J. Chaloupka, PhD, University of

Illinois at Chicago and the International Tobacco Evidence Network (ITEN)

The costs of smoking Dr. Hana Ross, American Cancer Society and the

International Tobacco Evidence Network (ITEN)

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Some Topics We’ll Explore

Analysis of supply Dr. Teh-wei Hu, University of California,

Berkeley

Illicit trade Dr. Ayda Yurekli, International Development

Research Center

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Introduction: Tobacco Use and Economic Principles

Global trends in smoking 1.1 billion adults smoke*

By 2025, 1.6 billion people are expected to be smokers*

Cigarettes (manufactured or hand rolled) comprise 85% of all tobacco products and pose the most danger to health†

*Source: World Health Organization. (1999); †Source: The Tobacco Atlas. (2006).

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Introduction: Tobacco Use and Economic Principles

The prevalence of smoking has been declining in high-income countries*

However, consumption of tobacco products has increased steadily since the 1970s in low- and middle-income countries*

Within countries, there has also been a shift in smoking from high-income men to low-income men and women

*Source: The World Bank. (1999).

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Per Capita Income ($ PPP*) 2003

*Note: PPP = purchasing power parity.Source: adapted by CTLT from The World Bank, World Development Indicators. (2006).

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Male Smoking Prevalence and Income, by Country

Image source: adapted by CTLT from The World Bank, World Development Indicators. (2006).

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Female Smoking Prevalence and Income, by Country

Image source: adapted by CTLT from The World Bank, World Development Indicators. (2006).

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Source: The World Bank. (1999).

Relationship between Smoking and Income Level

Smoking exacerbates poverty In many low-income households, spending on

tobacco results in high opportunity costs

Tobacco spending as a percentage of household expenditures among poorest households Bangladesh: 1.5% India: 4% South Africa: 4.7% Bulgaria: 10.4% Indonesia: 15%

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In Conclusion

Several links between economy and smoking at the country level

Smoking rates are related to income levels, particularly for males

Smoking rates for males and females are increasing in low- and middle-income countries

Vicious circle between poverty and smoking that can affect the poorest in any society