The economics of tobacco in Estonia

Autorid: Taal A , Kiivet R-A , Hu T-W
Väljaandja/tellija: Maailmapank
Märksõnad: majandus, suitsetamine, tubakas, haigestumus, tervishoid, kulud, ravikindlustus
Välja antud: 2004
Tüüp: Uuring/analüüs
Nimi SuurusFormaat
Taaljt2004.pdf467.34 kBAdobe PDF
Alamvaldkonnad:Sõltuvusainete tarvitamine
Sotsiaalmajanduslikud näitajad
Kirjeldus: This study was written in 2000 using the latest data available at the time. Where
readily available, some updated information has been added during preparation for publication.
Although several years have elapsed between writing and publication, the report offers sound
analysis and a methodology that could be a useful example for other researchers.
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% rise in the real price of cigarettes in Estonia will cause
consumption to fall by about 3.4%. 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