The Economics of Tobacco in Estonia
The study examines prevalence of tobacco use in Estonia, expenditures by smokers, and the prevalence of prominent diseases for which tobacco use is an important risk factor. It estimates private and public direct and indirect costs associated with...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/06/5059574/economics-tobacco-estonia http://hdl.handle.net/10986/13721 |
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okr-10986-137212021-04-23T14:03:09Z The Economics of Tobacco in Estonia Taal, Anneli Kiivet, Raul Hu, Teh-Wei ADVERTISING AGED AIR BIRTHS CANCERS CESSATION CIGARETTE SMOKING CORRUPTION DENTISTRY DISEASES EMPLOYMENT EPIDEMIOLOGY FAMILIES GIRLS HEALTH HEALTH BEHAVIOR HEALTH CARE HEALTH PROMOTION HEART DISEASE HOSPITALS INFORMATION CAMPAIGNS INPATIENT CARE INTERVENTION LUNG CANCER MEDIA MEDICINES MORBIDITY MORTALITY MORTALITY RATES MOTHERS NATIONAL HEALTH NUTRITION OFFENDERS PARTNERSHIP PASSIVE SMOKING PATIENTS PREMATURE DEATH PRICE OF TOBACCO PRODUCTS PRODUCTIVITY PUBLIC HEALTH RESPIRATORY DISEASES RETIREMENT RISK FACTORS SCHOOLS SEX SICKNESS ABSENCE SMOKERS SMOKING SMOKING SMOKING PREVALENCE TOBACCO TOBACCO TOBACCO TOBACCO CONSUMPTION TOBACCO CONTROL TOBACCO EPIDEMIC TOBACCO INDUSTRY TOBACCO SPONSORSHIP TOBACCO TAXES TOBACCO USE YOUNG PEOPLE TOBACCO TOBACCO CONTROL SMOKING CIGARETTES TOBACCO TAX CIGARETTE TAXES DISEASE BURDEN LUNG CANCER TAX POLICY PRICE ELASTICITY TOBACCO CONSUMPTION SMUGGLING HEALTH CARE COSTS FIRES HOUSEHOLD INCOME SICKNESS & DISABILITY DISABILITY PENSIONS CIGARETTE INDUSTRY The study examines prevalence of tobacco use in Estonia, expenditures by smokers, and the prevalence of prominent diseases for which tobacco use is an important risk factor. It estimates private and public direct and indirect costs associated with smoking in Estonia for 1998, looking at health care costs, fires, loss of household income, productivity losses, sickness benefits and disability, retirement and survivors' pensions. The total cost to the government in additional expenditures and lost revenues is estimated to be well over EEK 200 million greater than the tobacco tax revenues generated and reduced pension expenditures resulting from premature deaths attributable to tobacco. The second part of the paper estimates the relationship between cigarette prices (adjusted for inflation) and demand, including legal and illegal purchases by Estonians and by foreign visitors to Estonia. The price elasticity of cigarette demand is estimated at -0.34, implying that each 10 percent rise in the real price of cigarettes in Estonia will cause consumption to fall by about 3.4percent. The analysis shows that a tobacco tax rate increase will increase tax revenue from local consumption despite substitution between legal and illegal consumption, but that revenues will be greatly affected by the extent to which visitors (mostly from Finland) continue to buy (tax paid) cigarettes in Estonia. Stricter tobacco control measures, including higher taxation of cigarettes, would lead to healthier people, the avoidance of premature death, and increased productivity, which can only improve the economic performance of the country. 2013-05-30T19:36:22Z 2013-05-30T19:36:22Z 2004-06 http://documents.worldbank.org/curated/en/2004/06/5059574/economics-tobacco-estonia http://hdl.handle.net/10986/13721 English en_US HNP discussion paper; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research Europe and Central Asia Estonia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ADVERTISING AGED AIR BIRTHS CANCERS CESSATION CIGARETTE SMOKING CORRUPTION DENTISTRY DISEASES EMPLOYMENT EPIDEMIOLOGY FAMILIES GIRLS HEALTH HEALTH BEHAVIOR HEALTH CARE HEALTH PROMOTION HEART DISEASE HOSPITALS INFORMATION CAMPAIGNS INPATIENT CARE INTERVENTION LUNG CANCER MEDIA MEDICINES MORBIDITY MORTALITY MORTALITY RATES MOTHERS NATIONAL HEALTH NUTRITION OFFENDERS PARTNERSHIP PASSIVE SMOKING PATIENTS PREMATURE DEATH PRICE OF TOBACCO PRODUCTS PRODUCTIVITY PUBLIC HEALTH RESPIRATORY DISEASES RETIREMENT RISK FACTORS SCHOOLS SEX SICKNESS ABSENCE SMOKERS SMOKING SMOKING SMOKING PREVALENCE TOBACCO TOBACCO TOBACCO TOBACCO CONSUMPTION TOBACCO CONTROL TOBACCO EPIDEMIC TOBACCO INDUSTRY TOBACCO SPONSORSHIP TOBACCO TAXES TOBACCO USE YOUNG PEOPLE TOBACCO TOBACCO CONTROL SMOKING CIGARETTES TOBACCO TAX CIGARETTE TAXES DISEASE BURDEN LUNG CANCER TAX POLICY PRICE ELASTICITY TOBACCO CONSUMPTION SMUGGLING HEALTH CARE COSTS FIRES HOUSEHOLD INCOME SICKNESS & DISABILITY DISABILITY PENSIONS CIGARETTE INDUSTRY |
| spellingShingle |
ADVERTISING AGED AIR BIRTHS CANCERS CESSATION CIGARETTE SMOKING CORRUPTION DENTISTRY DISEASES EMPLOYMENT EPIDEMIOLOGY FAMILIES GIRLS HEALTH HEALTH BEHAVIOR HEALTH CARE HEALTH PROMOTION HEART DISEASE HOSPITALS INFORMATION CAMPAIGNS INPATIENT CARE INTERVENTION LUNG CANCER MEDIA MEDICINES MORBIDITY MORTALITY MORTALITY RATES MOTHERS NATIONAL HEALTH NUTRITION OFFENDERS PARTNERSHIP PASSIVE SMOKING PATIENTS PREMATURE DEATH PRICE OF TOBACCO PRODUCTS PRODUCTIVITY PUBLIC HEALTH RESPIRATORY DISEASES RETIREMENT RISK FACTORS SCHOOLS SEX SICKNESS ABSENCE SMOKERS SMOKING SMOKING SMOKING PREVALENCE TOBACCO TOBACCO TOBACCO TOBACCO CONSUMPTION TOBACCO CONTROL TOBACCO EPIDEMIC TOBACCO INDUSTRY TOBACCO SPONSORSHIP TOBACCO TAXES TOBACCO USE YOUNG PEOPLE TOBACCO TOBACCO CONTROL SMOKING CIGARETTES TOBACCO TAX CIGARETTE TAXES DISEASE BURDEN LUNG CANCER TAX POLICY PRICE ELASTICITY TOBACCO CONSUMPTION SMUGGLING HEALTH CARE COSTS FIRES HOUSEHOLD INCOME SICKNESS & DISABILITY DISABILITY PENSIONS CIGARETTE INDUSTRY Taal, Anneli Kiivet, Raul Hu, Teh-Wei The Economics of Tobacco in Estonia |
| geographic_facet |
Europe and Central Asia Estonia |
| relation |
HNP discussion paper; |
| description |
The study examines prevalence of tobacco
use in Estonia, expenditures by smokers, and the prevalence
of prominent diseases for which tobacco use is an important
risk factor. It estimates private and public direct and
indirect costs associated with smoking in Estonia for 1998,
looking at health care costs, fires, loss of household
income, productivity losses, sickness benefits and
disability, retirement and survivors' pensions. The
total cost to the government in additional expenditures and
lost revenues is estimated to be well over EEK 200 million
greater than the tobacco tax revenues generated and reduced
pension expenditures resulting from premature deaths
attributable to tobacco. The second part of the paper
estimates the relationship between cigarette prices
(adjusted for inflation) and demand, including legal and
illegal purchases by Estonians and by foreign visitors to
Estonia. The price elasticity of cigarette demand is
estimated at -0.34, implying that each 10 percent rise in
the real price of cigarettes in Estonia will cause
consumption to fall by about 3.4percent. The analysis shows
that a tobacco tax rate increase will increase tax revenue
from local consumption despite substitution between legal
and illegal consumption, but that revenues will be greatly
affected by the extent to which visitors (mostly from
Finland) continue to buy (tax paid) cigarettes in Estonia.
Stricter tobacco control measures, including higher taxation
of cigarettes, would lead to healthier people, the avoidance
of premature death, and increased productivity, which can
only improve the economic performance of the country. |
| format |
Publications & Research :: Working Paper |
| author |
Taal, Anneli Kiivet, Raul Hu, Teh-Wei |
| author_facet |
Taal, Anneli Kiivet, Raul Hu, Teh-Wei |
| author_sort |
Taal, Anneli |
| title |
The Economics of Tobacco in Estonia |
| title_short |
The Economics of Tobacco in Estonia |
| title_full |
The Economics of Tobacco in Estonia |
| title_fullStr |
The Economics of Tobacco in Estonia |
| title_full_unstemmed |
The Economics of Tobacco in Estonia |
| title_sort |
economics of tobacco in estonia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/06/5059574/economics-tobacco-estonia http://hdl.handle.net/10986/13721 |
| _version_ |
1764424348943253504 |