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 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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Bibliographic Details
Main Authors: Karki, Yagya B., Pant, Kiran Dev, Pande, Badri Raj
Language:English
en_US
Published: World Bank, Washington, DC 2003-10
Subjects:AGED, BEHAVIOURS, BURDEN OF DISEASE, CANCER, CIGARETTE SMOKING, CORRUPTION, DALY, DISEASES, ECONOMIC DEVELOPMENT, EMPLOYMENT, EPIDEMIOLOGY, FAMILIES, HEALTH, HEALTH CARE, HEALTH EDUCATION, HEALTH RISKS, HEALTH SERVICES, HEART DISEASE, IMMUNE DEFICIENCY SYNDROME, IMMUNODEFICIENCY, INFANT MORTALITY, INTERVENTION, LIFE EXPECTANCY, LITERACY, MEDIA, MORBIDITY, MORTALITY, MORTALITY RATE, MORTALITY RATES, NATIONAL HEALTH, NUTRITION, OLDER PEOPLE, PARTNERSHIP, PATIENTS, POPULATION GROWTH, PREGNANCY, PREMATURE DEATH, PRICE OF TOBACCO PRODUCTS, PRIVATE SECTOR, PUBLIC HEALTH, RADIO, RISKS OF TOBACCO, SEX, SMOKELESS TOBACCO, SMOKERS, SMOKING, SMOKING PREVALENCE, TOBACCO, TOBACCO ADVERTISING, TOBACCO COMPANIES, TOBACCO CONSUMPTION, TOBACCO CONTROL, TOBACCO EXPORTS, TOBACCO INDUSTRY, TOBACCO SMUGGLING, TOBACCO TAXES, TOBACCO USE, YOUNG PEOPLE TOBACCO, PUBLIC POLICIES,
Online Access:http://documents.worldbank.org/curated/en/2003/10/3546039/study-economics-tobacco-nepal
https://hdl.handle.net/10986/13750
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