Publication:
Cigarette Affordability in Indonesia: 2002 - 2017

Loading...
Thumbnail Image
Files in English
English PDF (3.87 MB)
845 downloads
English Text (119.17 KB)
37 downloads
Date
2018-05
ISSN
Published
2018-05
Editor(s)
Abstract
This study analyzes the recent evolution of cigarette affordability in Indonesia and weighs implications for the country’s tobacco control policy
Link to Data Set
Citation
Zheng, Rong; Marquez, Patricio V.; Ahsan, Abdillah; Hu, Xiao; Wang, Yang. 2018. Cigarette Affordability in Indonesia: 2002 - 2017. © World Bank. http://hdl.handle.net/10986/30027 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Cigarette Affordability in the Russian Federation 2002-2017
    (World Bank, Washington, DC, 2018-09) Zheng, Rong; Marquez, Patricio V.; Kuznetsova, Polina; Hu, Xiao; Wang, Yang
    The goal of this study is to examine cigarette affordability in Russia between 2002 and 2017 in order to provide an understanding of the country's current tobacco excise tax policy, and to identify opportunities and next steps.
  • Publication
    Cigarette Affordability in China, 2001-2016
    (World Bank, Washington, DC, 2016-08-01) Zheng, Rong; Wang, Yang; Hua, Xiao; Marquez, Patricio V.
    This study investigates the affordability of cigarettes in China between 2001 and 2016. In the past two decades, China has achieved unprecedented economic growth rates. The country’s per capita gross domestic product (GDP) has increased at an average annual rate of 10 percent. Rapid economic growth increases people’s purchasing power and makes cigarettes more affordable, as income gains overrun cigarette price increases. The results show that average-price cigarettes in China were 1.85 times more affordable in 2016 than in 2001, while the cheapest category of cigarettes, typically consumed by low-income persons, became 2.09 times more affordable over this period. Thus, cheap cigarettes aimed at low income Chinese consumers exhibit higher levels of affordability, and have increased their affordability faster, than other cigarettes aimed at average income consumers. The study estimates the affordability elasticity of cigarette consumption in China at -0.6, suggesting that a 10 percent increase in cigarette affordability will result in 6.01 percent increase in cigarette consumption. Cigarette affordability in China has also increased in comparison with other countries. China’s cigarette affordability was still at a low level compared with other countries in the 1990s, but increased quickly and to a high level within just two decades. Findings from this study have important implications for tax policy, pertaining to tobacco prices and tobacco control. These findings confirm that for tax increases to reduce the number of smokers and deaths in China, policy makers need to review the potential effects of rising income and prices with a focus on reducing cigarette affordability. It is also important to look at affordability not only on average but by income group - in this study proxied by using average and rural incomes.
  • Publication
    The Impact of Passive Smoking at Home on Respiratory Diseases : Results from the Indonesia 2001 National Survey Data
    (World Bank, Washington, DC, 2005-06) Djutaharta, Triasih; Ahsan, Abdillah; Tachman, Tata; Hendratno; Gilpin, Elizabeth
    This study uses raw data covering over 17,000 people from the 2001 National Socio-Economic Survey (NSES) and 2001 National Household Health Survey (NHHS), including 3621 children under 10 years of age, to investigate the relationship between respiratory diseases and exposure to secondhand cigarette smoke through living in a home where people smoke. An important finding is that children under 10 years of age who live in homes where 30 or more cigarettes are smoked each day are significantly more likely to have various respiratory diseases than children who live in smoke-free homes.
  • Publication
    Research on Tobacco in Indonesia : An Annotated Bibliography and Review of Research on Tobacco Use, Health Effects, Economics, and Control Efforts
    (World Bank, Washington, DC, 2003-10) Djutaharta, Triasih; Viriya Surya, Henry
    This report summarizes 46 studies on various aspects of tobacco in Indonesia published since 1990. Studies are arranged alphabetically by author's last name. The studies include tobacco use surveys, studies on tobacco-related mortality and diseases including costs, and health problems associated with environmental tobacco smoke. Some studies cover interventions to reduce tobacco use, and tobacco control policies, including price increases. Some studies look at specific groups such as children, street vendors, drivers, youth, athletes or nurses. Studies were traced using bibliographies of an initial set of studies collected
  • Publication
    Cigarette Consumption, Taxation, and Household Income : Indonesia Case Study
    (World Bank, Washington, DC, 2005-02) Adioetomo, Sri Moertiningsih; Djutaharta, Triasih; Hendratno
    Cigarette consumption has been increasing in Indonesia, as in many other developing countries, causing a rising burden of disease and premature death. Higher excise taxes have proved effective in many countries in reducing cigarette consumption and raising government revenues. This study examines the effect of higher prices/taxes on the decision to smoke, the quantity of cigarettes consumed by smokers in different income groups in Indonesia, and government revenues. It uses 1999 Social and Economic Survey (SUSENAS) household data, with households as the unit of analysis. There was at least one smoker in 57 percent of all households. Most households smoked kretek cigarettes with filters (64 percent), or without filters (31 percent). Average household monthly cigarette consumption was 18 packs of 16 cigarettes. Per capita cigarette consumption was higher for higher income households: 7.83 packs per month, compared to 4 packs for low-income households. On average, households spent 6.22 percent of their total income on cigarettes and kreteks, lower-income households spent the highest percentage. The study suggests that price is not a significant factor in household decisions to smoke or not, but has a significant effect on the quantity of cigarettes smoked: each 10 percent increase in price would reduce total cigarette consumption by 6 percent. The reduction would be higher-nearly 7 percent-among low-income households, and lower-3 percent-among high-income households. Cigarette consumption increases as income rises: a 10 percent increase in household income would increase consumption by 6.5 percent, with a particularly strong effect among low-income households-a 9 percent increase-but little change among high income households-an increase of less than 1 percent. Simulations show that a 10 percent tax increase that raised cigarette prices by 4.9 percent would reduce consumption by 3 percent, and increase tax revenues by 6.7 percent, ceteris paribus, including assuming no significant switching among cigarette products with different prices and tax levels.

Users also downloaded

Showing related downloaded files

  • Publication
    Economic Recovery
    (World Bank, Washington, DC, 2021-04-06) Malpass, David; Georgieva, Kristalina; Yellen, Janet
    World Bank Group President David Malpass spoke about the world facing major challenges, including COVID, climate change, rising poverty and inequality and growing fragility and violence in many countries. He highlighted vaccines, working closely with Gavi, WHO, and UNICEF, the World Bank has conducted over one hundred capacity assessments, many even more before vaccines were available. The World Bank Group worked to achieve a debt service suspension initiative and increased transparency in debt contracts at developing countries. The World Bank Group is finalizing a new climate change action plan, which includes a big step up in financing, building on their record climate financing over the past two years. He noted big challenges to bring all together to achieve GRID: green, resilient, and inclusive development. Janet Yellen, U.S. Secretary of the Treasury, mentioned focusing on vulnerable people during the pandemic. Kristalina Georgieva, Managing Director of the International Monetary Fund, focused on giving everyone a fair shot during a sustainable recovery. All three commented on the importance of tackling climate change.
  • Publication
    Media and Messages for Nutrition and Health
    (World Bank, Washington, DC, 2020-06) Calleja, Ramon V., Jr.; Mbuya, Nkosinathi V.N.; Morimoto, Tomo; Thitsy, Sophavanh
    The Lao People’s Democratic Republic (Lao PDR) has experienced rapid and significant economic growth over the past decade. However, poor nutritional outcomes remain a concern. Rates of childhood undernutrition are particularly high in remote, rural, and upland areas. Media have the potential to play an important role in shaping health and nutrition–related behaviors and practices as well as in promoting sociocultural and economic development that might contribute to improved nutritional outcomes. This report presents the results of a media audit (MA) that was conducted to inform the development and production of mass media advocacy and communication strategies and materials with a focus on maternal and child health and nutrition that would reach the most people from the poorest communities in northern Lao PDR. Making more people aware of useful information, essential services and products and influencing them to use these effectively is the ultimate goal of mass media campaigns, and the MA measures the potential effectiveness of media efforts to reach this goal. The effectiveness of communication channels to deliver health and nutrition messages to target beneficiaries to ensure maximum reach and uptake can be viewed in terms of preferences, satisfaction, and trust. Overall, the four most accessed media channels for receiving information among communities in the study areas were village announcements, mobile phones, television, and out-of-home (OOH) media. Of the accessed media channels, the top three most preferred channels were village announcements (40 percent), television (26 percent), and mobile phones (19 percent). In terms of trust, village announcements were the most trusted source of information (64 percent), followed by mobile phones (14 percent) and television (11 percent). Hence of all the media channels, village announcements are the most preferred, have the most satisfied users, and are the most trusted source of information in study communities from four provinces in Lao PDR with some of the highest burden of childhood undernutrition.
  • Publication
    The Journey Ahead
    (Washington, DC: World Bank, 2024-10-31) Bossavie, Laurent; Garrote Sánchez, Daniel; Makovec, Mattia
    The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.
  • Publication
    South Asia Development Update, April 2024: Jobs for Resilience
    (Washington, DC: World Bank, 2024-04-02) World Bank
    South Asia is expected to continue to be the fastest-growing emerging market and developing economy (EMDE) region over the next two years. This is largely thanks to robust growth in India, but growth is also expected to pick up in most other South Asian economies. However, growth in the near-term is more reliant on the public sector than elsewhere, whereas private investment, in particular, continues to be weak. Efforts to rein in elevated debt, borrowing costs, and fiscal deficits may eventually weigh on growth and limit governments' ability to respond to increasingly frequent climate shocks. Yet, the provision of public goods is among the most effective strategies for climate adaptation. This is especially the case for households and farms, which tend to rely on shifting their efforts to non-agricultural jobs. These strategies are less effective forms of climate adaptation, in part because opportunities to move out of agriculture are limited by the region’s below-average employment ratios in the non-agricultural sector and for women. Because employment growth is falling short of working-age population growth, the region fails to fully capitalize on its demographic dividend. Vibrant, competitive firms are key to unlocking the demographic dividend, robust private investment, and workers’ ability to move out of agriculture. A range of policies could spur firm growth, including improved business climates and institutions, the removal of financial sector restrictions, and greater openness to trade and capital flows.
  • Publication
    Remarks at the United Nations Biodiversity Conference
    (World Bank, Washington, DC, 2021-10-12) Malpass, David
    World Bank Group President David Malpass discussed biodiversity and climate change being closely interlinked, with terrestrial and marine ecosystems serving as critically important carbon sinks. At the same time climate change acts as a direct driver of biodiversity and ecosystem services loss. The World Bank has financed biodiversity conservation around the world, including over 116 million hectares of Marine and Coastal Protected Areas, 10 million hectares of Terrestrial Protected Areas, and over 300 protected habitats, biological buffer zones and reserves. The COVID pandemic, biodiversity loss, climate change are all reminders of how connected we are. The recovery from this pandemic is an opportunity to put in place more effective policies, institutions, and resources to address biodiversity loss.