New IPS study highlights benefits to national economy from reduced tobacco use
29 March 2021
New IPS study ‘Talking Tobacco: How Reduced Consumption Benefits the National Economy’ by Priyanka Jayawardena and Harini Weerasekera offers empirical evidence that the net impact on the national economy’s output from decreased tobacco consumption is positive.
Based on the Household Income and Expenditure Survey (HIES) data of the Department of Census and Statistics (DCS) and the Economics of Tobacco Toolkit of the World Bank, the study finds that a 20% reduction in tobacco use will lead to a 30% net benefit to the economy through increased consumption of non-tobacco goods and services.
The estimates are based solely on the output approach and do not take into account economic benefits associated with reduced tobacco use such as reduced healthcare costs, reduced environmental costs and other positive gains linked to increased non-tobacco consumption; all of which accrue benefits not just for tobacco users, but for the country as a whole.