A Study on the Economics of Tobacco in Nepal
This study is based both on secondary and primary data. The primary data were collected using a smoking behavior survey and a purposive sample survey among tobacco-cultivating farmers. The overall smoking prevalence in Nepal for the population aged...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/10/3546039/study-economics-tobacco-nepal http://hdl.handle.net/10986/13750 |
| Summary: | This study is based both on secondary
and primary data. The primary data were collected using a
smoking behavior survey and a purposive sample survey among
tobacco-cultivating farmers. The overall smoking prevalence
in Nepal for the population aged 15 or more is estimated at
37.4%, and is higher (47.4%) among males than among females
(27.6%). Poor people are more likely to consume tobacco than
their better-off counterparts, resulting in increased health
hazards and the diversion of scarce income. The tobacco
industry is a lucrative business for the private sector and
government; the private sector makes large profits, and the
tax revenue is substantial. Economic analysis estimated the
price elasticity of demand for cigarettes and bidi at
-0.882. It is found also that the poor and the young are the
groups most sensitive to price changes. Therefore,
considering health and economic benefits and poverty
alleviation goals, a policy of real price increase through
taxation of all types of tobacco product would be a
desirable public policy for the government of Nepal to consider. |
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