The Impoverishing Effect of Tobacco Use in Albania [Working Paper Series]

This Working Paper was written by Development Solutions Associates (DSA) in Albania. The working paper examines the impoverishing effect of tobacco use on households in Albania. The researchers found that 39% of households surveyed had at least one smoker, and these households dedicated 5.5% of their household income towards tobacco on average. Due to this spending, as well as the medical expenses that stem from tobacco use, nearly 13,000 households were pushed below the poverty line. This equates to 60,000 individuals, including more than 10,000 children. Further, the income of an average smoking household is reduced by 2% as a result of the tobacco-related expenditures. These findings demonstrate that tobacco use leads to and exacerbates poverty. The working paper concludes with recommendations for policies, including tobacco tax increases, that would reduce consumption and protect households from the impoverishing effect of smoking.

A Policy Brief based on the working paper can be found here.