The impoverishing effect of Tobacco use in Albania

The impoverishing effect of Tobacco use in Albania

Authors:Elvina Merkaj, Edvin Zhllima, Drini Imamirović

Tirana, November 2, 2022

Motivation of the study

  • National poverty estimates are an important political variable - the estimate of the percentage of poor determines the course of development policy debates in several countries.
  • Tobacco use is one of the major factors that hinder a nation’s ability to achieve poverty reduction goals.
  • Money spent on tobacco is highly unproductive and increases tobacco-related diseases, the resulting increased healthcare costs and the loss of income due to premature deaths and morbidity further add to the burden of poverty.

Aim of the study

We propose to quantify the direct impact of tobacco spending on poverty measures: like poverty head counts and poverty gap, taking into account tobacco expenditures and health expenditures attributed to smoking using HBS 2017 data.