Talking Tobacco: How Reduced Consumption Benefits the Economy

Research team

Priyanka Jayawardena
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Harini Weerasekera
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Published Year

March 2021


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, this new study provides empirical evidence that the net impact on the national economy’s output from decreased tobacco consumption is positive. The study reveals that a 20% reduction in tobacco consumption will lead to a 30% net benefit to the economy through increased consumption of non-tobacco goods and services.