S26 5 smoking, standard of living, and poverty in china- hu teh-wei

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吸烟与贫困在中国

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S26 5 smoking, standard of living, and poverty in china- hu teh-wei

  1. 1. Smoking, Standard of Living, and Poverty in China Teh-wei Hu University of California, Berkeley and Public Health Institute To be presented at the 15th WCTOH Singapore March 24, 2012 Funding: USNIH/Fogarty International Center Grant (R01-TW05938) 1
  2. 2. OverviewI. Conceptual frameworkII. Smoking expenditures among Chinese householdsIII. Impact of smoking on household expenditures and standard of livingIV. Impact of smoking on medical expenditures and povertyV. Conclusions 2
  3. 3. I. Conceptual Framework• Smoking reduces disposable income• Smoking reduces standard of living• Smoking leads to higher medical expenditures• Causes of poverty – human capital theory 3
  4. 4. Reduce Reduce Expenditures on Disposable Food, Housing, Income Clothing, Education Reduced Standard of Living ImpoverishmentSmoking Poverty Increased Poor Health Medical Status Expenditures 4
  5. 5. Trade-off Between Smoking and Standard of Living Regression model:(1) Expenditures per capita = f(age, family size, education, per capita income, urban, cigarette consumption)(2) Expenditures per capita = f(age, family size, education, per capita income, urban, cigarette consumption) 5
  6. 6. Impact of Smoking on Standard of Living• Standard of living = Total Expenditure (TE) – Cigarette Expenditure (CE)• Smoking Status = # cigarette consumption/per day  (TE – CE) /  cigarette consumption 6
  7. 7. II. Smoking Expenditures amongRural/Urban Chinese Households 7
  8. 8. China Tobacco Consumption SurveyUrban Sample: 2575 Households Smokers: 1199 Non-smokers: 1376Rural Sample: 829 Households Smokers: 661 Non-smokers: 108Hu, Mao, Liu (2005) 8
  9. 9. Sample Distribution by Poverty Level Urban (2,575) Rural (829) Poverty 3-5% 17.6% Near Poverty 18.1 18.7 Non-poverty 69.6 36.7Hu, Mao, Liu (2006) 9
  10. 10. Comparison Between Smoking vs. Non-Smoking Rural Poverty Households Smoking Non-SmokingTotal Expenditures 359 Yuan 350 Yuan Food 51.0% 53% Housing 2.4 1.9 Clothing 6.5 9.0 Education 21.8 26.0 Cigarette 8.4 - 10
  11. 11. Comparison Between Smoking vs. Non-Smoking Urban Poverty Households Smoking Non-SmokingTotal Expenditures 605 Yuan 620 Yuan Food 59.9% 62.2% Housing 9.2 9.1 Clothing 11.1 11.3 Education 16.7 17.2 Cigarette 6.7 - 11
  12. 12. Urban Sample (smoker sample) Poverty Near Poverty Non-PovertyDaily Consumption 11.2 11.9 12.0(# of cigarette)Price per pack (Yuan) 3.8 4.7 8.2Monthly Cigarette 29 46 126Expenditures (Yuan)Percent of Foreign 0.8% 4.6% 6.6%Cigarettes 12
  13. 13. Rural Sample (smoker sample) Poverty Near Poverty Non-PovertyDaily Consumption 14.4 16.2 18.6(# of cigarette)Price per pack (Yuan) 1.1 1.2 1.7Monthly Cigarette 24 29 49Expenditures (Yuan)Percent of Foreign 0 0 0.1%Cigarettes 13
  14. 14. Trade-off Between CigaretteExpenditures and Standard of LivingOne additional Yuan per month will reduce…• Total household expenditures (minus tobacco) 0.52 Yuan• Food expenditures per capita 0.05 Yuan• Housing expenditures per capita 0.05 Yuan• Clothing expenditures 0.02 Yuan 14
  15. 15. Trade-off Between CigaretteConsumption and Standard of LivingOne pack per month will reduce…• Total household expenditures (minus tobacco) 2.4 Yuan• Food expenditures per capita 0.5 Yuan• Housing expenditures per capita 0.4 Yuan• Clothing expenditures 0.2 Yuan 15
  16. 16. IV. Excessive Medical Spending and Impoverishment (among lowest income quintile) Rural Poverty Rate Urban Poverty RatePrevailing Income 29.6% 58.3%Income excessive(after medical spending) 32.2% 65.4%Income poverty rate 2.6% 7.1%Projected Populations 6.3 5.8(millions)Liu, Rao, Hu, et al (2006) 16
  17. 17. Spending on Cigarette and Impoverishment Rural Poverty Rate Urban Poverty RatePrevailing Income 29.6% 58.3%Income aftersubtracting cigarette 37.1% 77.0%spendingDifference 7.5% 18.7%Income poverty 17.1 24.8(million) population 17
  18. 18. V. ConclusionsCigarette Expenditures:• Have an immediate negative impact on living standards• Can reduce the nutritional states through the replacement of expenditures on food• Can lead to excessive medical expenditures and impoverishment 18

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