Economic Impacts of Smoking: Healthcare, Productivity & Agriculture

Most studies of the effects of smoking focus on the public health aspects. Tobacco smoking, however, has economic impacts as well, involving health care systems, worker productivity, and agricultural production.

Health Care Burden

• According to the World Health Organization, the cost of treating smoking-related diseases, such as lung cancer, imposes a financial burden on health care systems.

Reduced Productivity

• Deaths and illnesses related to smoking harm economic productivity by reducing the size and overall health of the work force.

Agricultural Production

• Demand for cigarettes and other tobacco products requires farmland for growing tobacco, which reduces the availability of land for food production.

Smoking Bans

• Some cities, states and even nations have imposed bans on smoking in public places, such as restaurants and bars. Critics claim these bans harm profits of restaurants and other businesses.

Expert Insight

• Research by the Federal Reserve Bank of St. Louis suggests that smoking bans have no significant effect on sales at bars and restaurants.