Regional economic impact of a reduction of resident expenditure on cigarettes: a case study of Glasgow

Abstract

Cigarette production and consumption as a typical commodity is addressed, not smoking as an activity. It is argued that a change in the pattern of consumer expenditure against cigarettes will have direct and multiplier effects on economic activity in the affected region. Using a modified input-output model, an applied case study finds that a cessation of cigarette purchasing by the citizens of Glasgow would bring net benefits to the Scottish economy. Exchequer losses of tobacco tax revenue would be significantly offset by increased receipts from other activities.