Transcript PowerPoint Presentation - Global Tobacco Control

Introduction to Tobacco-Control Economics
Hugh Waters, PhD
Johns Hopkins Bloomberg School of Public Health
 2007 Johns Hopkins Bloomberg School of Public Health
Section 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 highincome 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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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%
Source: The World Bank. (1999).
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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
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