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Burden of smoking-related disease and potential impact of cigarette price increase in Peru

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  • Hernandez-Vasquez, Akram

Abstract

Objectives. To calculate the burden of smoking-related disease and evaluate the potential economic and health impact of tax-induced cigarette price increase in Peru. Materials and methods. A microsimulation model was used to estimate smoking-attributable impact on mortality, quality of life, and costs associated with heart and cerebrovascular disease, chronic obstructive pulmonary disease, pneumonia, lung cancer, and another nine cancers. Three scenarios, involving increased taxes, were evaluated. Results. A yearly total of 16,719 deaths, 6,926 cancer diagnoses, 7,936 strokes, and 7,548 hospital admissions due to cardiovascular disease can be attributed to smoking in Peru. Similarly, 396,069 years of life are lost each year from premature death and disability, and the cost of treating smoking-attributable health issues rises to 2,500 million soles (PEN 2015). Currently, taxes on tobacco cover only 9.1% of this expense. If cigarette prices were to increase by 50% over the next 10 years, 13,391 deaths, 6,210 cardiovascular events, and 5,361 new cancers could be prevented, representing an economic benefit of 3,145 million (PEN) in savings in health costs and increases in tax revenues. Conclusions. Smoking-attributable burden of disease and costs to the health system are very high in Peru. Higher cigarette taxes could have substantial health and economic benefits for the country.

Suggested Citation

  • Hernandez-Vasquez, Akram, 2016. "Burden of smoking-related disease and potential impact of cigarette price increase in Peru," MPRA Paper 75677, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:75677
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    References listed on IDEAS

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    Cited by:

    1. Meelan Thondoo & David Rojas-Rueda & Joyeeta Gupta & Daniel H. de Vries & Mark J. Nieuwenhuijsen, 2019. "Systematic Literature Review of Health Impact Assessments in Low and Middle-Income Countries," IJERPH, MDPI, vol. 16(11), pages 1-21, June.
    2. Sara, Raisa, 2023. "The impact of the COVID-19 pandemic on alcohol and tobacco consumption: Evidence from Peru," Social Science & Medicine, Elsevier, vol. 325(C).

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    More about this item

    Keywords

    Health Economics; Tobacco use; Cost of illness; Cost-Benefit analysis Taxes; Peru;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • I1 - Health, Education, and Welfare - - Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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