The macroeconomic and distributional effects of reduced smoking prevalence in NSW


Tobacco industry interests often oppose new tobacco control strategies by claiming such measures will damage the economy and “cost jobs”.

Cancer Council NSW commissioned health economists Bill Junor, David Collins and Helen Lapsley to undertake a detailed macroeconomic assessment of which industry sectors would be affected if smoking prevalence in NSW dropped by 25%. They concluded that the effects upon aggregate NSW output and employment would be minor. In fact, the only industry to be significantly affected would be the tobacco industry itself.

One of the unexpected benefits of a 25% drop in prevalence across the State is that the greatest beneficiaries would be households in the lowest socioeconomic group who spend 18% of their income on tobacco products compared to 3% spent by the highest SES groups

Suggested citation:

Junor W, Collins D, Lapsley H. The macroeconomic and distributonal effects of reduced
smoking prevalence in New South Wales. The Cancer Council New South Wales. Sydney
June 2004.

Published by the Cancer Council NSW, June 2004

The Cancer Council NSW
Health Strategies Division
153 Dowling Street
King Cross NSW 2011

Telephone: (02) 9334 1900
Fax: (02) 9326 9328

For more  info:(Click here PDF.  400KB)