This Working Paper estimates the crowding-out impact of tobacco expenditures on household budget allocation to other commodities in Montenegro. The results show smoking households in Montenegro spend less on essential commodities, and more on bars and restaurants, alcohol, coffee, and sugary drinks. These effects impact the greater economy as well, increasing inequality and hampering human capital development. The working paper concludes by recommending that policymakers strengthen and accelerate tobacco control policies, including raising tobacco excise taxes and ensuring that smoke-free policies are implemented effectively.
Impact of Tobacco Spending on Intra-household Resource Allocation in Montenegro (2022) - download here