The economics of global tobacco control
BMJ 2000; 321 doi: https://doi.org/10.1136/bmj.321.7257.358 (Published 05 August 2000) Cite this as: BMJ 2000;321:358
Data supplement
Table A Independent quantitative studies on the contribution of tobacco to various countries’ economies
Study Model Assumption of reduction or elimination of domestic consumption expenditures or production Assumption of alternative expenditure patterns Assumption of government reaction Results Scotland McNicoll and Boylew1 Static Elimination of domestic consumption expenditures in 1989 According to "average" expenditure patterns No change in government expenditure Net gain of 7869 jobs in 1989 United States Warner and Fultonw2 Dynamic Scenarios: Elimination of domestic consumption expenditures, and doubling the rate of decline in consumption over the period 1992-2005 According to "average" expenditure patterns Increases in other government taxes, and/or reduced government spending Net gain of 5600 jobs in 1992 up to an additional 1500 jobs by 2005 Warner et alw3 Dynamic Scenarios: Elimination of domestic consumption expenditures, and doubling the rate of decline in consumption over the period 1993-2000 According to "average" expenditure patterns Increases in other government taxes, and/or reduced government spending Net gain of 47 jobs in 1993 and 133000 jobs by 2000, 19719 net jobs with doubling consumption decline United Kingdom Buck et alw4 Static 40% decline in domestic consumption expenditures in 1990 Scenarios: According to "recent stoppers", all non-smokers, all former smokers, and "average" expenditure patterns Increases in other government taxes or reduced government spending Net gain of 155542 jobs or 115688 full time equivalent jobs in 1990 with "recent stopper" expenditures and government increasing other consumer taxes Canada Irvine and Simsw5 Static 20% decline in domestic demand for cigarettes in 1995 According to "average" expenditure patterns Reduced government spending Net loss of 6120 jobs in 1995 South Africa Van der Merwew6 Static Scenarios: Elimination of domestic consumption expenditures, and doubling the rate of decline in consumption in 1995 Scenarios: According to "recent stoppers", and "average" expenditure patterns Increases in other government taxes, and/or reduced government spending Net gain of 50236 jobs in 1995 with elimination of tobacco and "recent stopper" expenditures Zimbabwe Van der Merwew7 Static Elimination of domestic consumption expenditures and all tobacco production in 1980 Scenarios: According to "average" input-output patterns and all production shifted to alternatives in agriculture No change in government expenditure Net loss of 87798 jobs in 1980 and 47463 jobs when all output goes to alternatives in agriculture Bangladesh Van der Merwew8 Static Elimination of domestic consumption expenditures and all tobacco production for cigarettes and "bidis" in 1994 According to "average" expenditure patterns No change in government expenditure Net gain of 10989192 jobs in 1994 in the formal sector w1 McNicoll IH, Boyle S. Regional economic impact of a reduction of resident expenditure on cigarettes: a case study of Glasgow. Appl Econ 1992;24:291-6.
w2 Warner KE, Fulton GA. The economic implications of tobacco product sales in a non-tobacco state. JAMA 1994;271:771-6.
w3 Warner KE, Fulton GA, Nicolas P, Grimes DR. Employment implications of declining tobacco product sales for the regional economies of the United States. JAMA 1996;275:1241-6.
w4 Buck D, Godfrey C, Raw M, Sutton M. Tobacco and jobs. Society for the Study of Addiction and Centre for Health Economics, York: University of York. (1995),
w5 Irvine IJ, Sims WA. Tobacco control legislation and resource allocation effects. Can Public Policy 1997;23:259-73.
w6 Van der Merwe R. The economics of tobacco control in South Africa. In: Abedian I, van der Merwe R, Wilkins N, Jha P, eds. The economics of tobacco control: towards an optimal policy mix. Cape Town: Medical Association of South Africa Press, 1998:251-71.
w7 Van der Merwe R. Employment and output effects for Zimbabwe with the elimination of tobacco consumption and production. Washington, DC: Population, Health and Nutrition Department, World Bank, 1998.
w8 Van der Merwe R. Employment and output effects for Bangladesh following a decline in tobacco consumption. Washington, DC: Population, Health and Nutrition Department, World Bank, 1998.
Table B Independent qualitative studies on the contribution of tobacco to various countries’ economies
Study Assumptions Conclusions Canada Allenw9 Jobs could be subsumed through normal workforce attrition Technological changes caused many job losses
Increased public revenues could be spent to maintain services and create jobs
Cost savings in shifting Canadian production abroad
Distribution jobs would remain
Economy would self correct
Control policies, primarily taxes, would have negligible adverse effect on employment Pacific Islands Collins and Lapsleyw10 Alternative cash crops are likely available on islands that grow tobacco Freed expenditure resources directed to goods and services with higher labour content
Improvement in balance of payments on current account from reduced tobacco imports
Reduction in consumption would probably produce small increase in employment w9 Allen RC. The false dilemma: the impact of tobacco control policies on employment in Canada. Ottawa, Ontario: National Campaign for Action on Tobacco, 1993.
w10 Collins D, Lapsley H. The economic impact of tobacco smoking in Pacific Islands. Sydney: Pacific Tobacco and Health Project, Adventist Development and Relief Agency, Australian International Development Assistance Bureau, 1997.
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