Abstract
As indicated by the World Health Organization, consumption of tobacco causes over 7 million deaths a year
worldwide. Though smoking is the same kind of addiction as consumption of alcohol or narcotic substances, it
does not cause immediate consequences; in the long term, however, it can inflict major damage to one's health,
drastically decreasing longevity and the quality of life of smokers themselves and the people around them,
causing considerable economic losses to the national economy as a result. This study assesses the costs and
benefits ensuing from the economic influence of consumption of tobacco products. In spite of the smoking
restriction policy developed and implemented in Latvia in accordance with the regulatory acts of the EU, the
population of Latvia still lacks proper knowledge and idea of the consequences of addictive substance use.
Methods used in the study: descriptive and comparative statistics method, correlation analysis and cost-benefit
analysis, as well as expert interviews and the triangulation method.
Key results of the study: A share of about 40% of the total disease burden in Latvia is associated with various
behavioural risks, with smoking among the most essential ones (11.5%). Restriction of consumption of tobacco
products positively affects the indices of passive smoking and reduces the exposure of active smokers. In 2018,
excise tax proceeds from tobacco products made up 20% of the total amount of excise tax, exceeding the figures
of 2017 by 8.86%. Calculation of the cost-benefit parameter and division of discounted revenues by discounted
costs have led to the inference that revenues are 2.35 greater than costs, which is indicative of the fact that
smokers produce considerable income for the national budget within the context of the existing regulatory
framework and restrictions
worldwide. Though smoking is the same kind of addiction as consumption of alcohol or narcotic substances, it
does not cause immediate consequences; in the long term, however, it can inflict major damage to one's health,
drastically decreasing longevity and the quality of life of smokers themselves and the people around them,
causing considerable economic losses to the national economy as a result. This study assesses the costs and
benefits ensuing from the economic influence of consumption of tobacco products. In spite of the smoking
restriction policy developed and implemented in Latvia in accordance with the regulatory acts of the EU, the
population of Latvia still lacks proper knowledge and idea of the consequences of addictive substance use.
Methods used in the study: descriptive and comparative statistics method, correlation analysis and cost-benefit
analysis, as well as expert interviews and the triangulation method.
Key results of the study: A share of about 40% of the total disease burden in Latvia is associated with various
behavioural risks, with smoking among the most essential ones (11.5%). Restriction of consumption of tobacco
products positively affects the indices of passive smoking and reduces the exposure of active smokers. In 2018,
excise tax proceeds from tobacco products made up 20% of the total amount of excise tax, exceeding the figures
of 2017 by 8.86%. Calculation of the cost-benefit parameter and division of discounted revenues by discounted
costs have led to the inference that revenues are 2.35 greater than costs, which is indicative of the fact that
smokers produce considerable income for the national budget within the context of the existing regulatory
framework and restrictions
| Original language | English |
|---|---|
| Pages (from-to) | 72-83 |
| Journal | Regional Review |
| Issue number | 14 |
| Publication status | Published - 2019 |
Keywords*
- incidence and restriction of tobacco products, economic impact.
- economic impact
Field of Science*
- 5.2 Economy and Business
Publication Type*
- 1.3. Anonymously reviewed scientific article published in a journal with an international editorial board and is available in another indexed database