The Crowding-out Effect of ....

The Crowding-out Effect of Tobacco Consumption in Indonesia

Research

The Crowding-out Effect of Tobacco Consumption in Indonesia

Tobacco consumption is pervasive in Indonesia, where six out of ten households reported tobacco spending. Smoking households divert a significant share (11%) of their budget to tobacco products. This study highlights that tobacco spending crowds out household budgets on essential commodities such as food, clothing, housing, education, and health care. The simulation reveals that reducing tobacco spending will significantly increase household spending on essential commodities.