Smoking in the UK - economic analysis of its costs Essay Example for Free

take in in the UK economic analysis of its costs Essayjoined Kingdom was the original state of locoweed prevalence and sens has caused widespread expiration of the first countries. According to ASH1 (2011) there are well-nigh 10 million adults who smoke backsides in Great Britain which is about a sixth of the total UK population. Throughout the United Kingdom, there was about bingle-third per cent of all(prenominal) the middle ages deaths caused by consume. Therefore, United Kingdom is one of the closely importance states of baccy control.G everyplacenment control on queer consumption through contrastive instruments such as ad-all advertising and furtherance of tobacco are banned in the UK taxation-taxation is probably the almost effective means of reducing tobacco consumption. Raising tobacco monetary values through taxation erect top in signifi groundworkt benefits to the economy. For instance, a 5% set make up would result in 190,000 fewer smokers and inc rease government r level offue by 520 million per year in the first five years.As can be seen in figure 1, the numbers show that between 1991 and 2001 the retail price of cigarettes increased by about 80% in real terms. This is explained to a large extent by tax increases over the same period the proportion of tax in the retail price rose from 73% to 80%.1.2 Definition1.2.1 External benefitExternal benefit is the benefit to the third party who is non come to into the activity which causes the cost (Anderton, 200896)1.2.2 External costExternal cost is the cost to the third party who is not involved into the activity which causes the cost (Anderton, 200896)1.3 TheoryThis topic exist the relationship between demand and price which is if price increases, the quantity demanded becomes lower. Furthermore, taxation is a factor of the increase and drop of demand and supply. Besides, advertising withal is an important factor to regularize the demand of cigarette.1.4 AimsThis article will tell you the positive and negative externalities of cigarette smoking. Moreover, it offers how effective the government had been done for reducing consumption of cigarette and also the other opinions of government instruments which can control the consumption of tobacco are included.2. Finding2.1 External benefit of smokingNowadays, there is a great deal of data show that cigarette is not good for our human. However, smoking cigarette salve has its advantage. According to an article published in 1995 in Neuro acquaintance Biobehavioral Reviews, the smoking rates of schizophrenics have much high than plurality with other mental illnesses. Therefore, smoking cigarette can alleviate symptoms of mental illnesses such as anxiety and schizophrenia.2.2 External cost of smoking2.21 Secondhand smokingIn a research, nonoperational smoking cause about 600,000 deaths per year all over the world. (ASH 1,2011)Thus, secondhand smoking is a big paradox in UK. It is not only passive smoker ea sier than the smoker to get decease it is also influence the later generations. According to an article Smoking in Public place (2003) shows that the link between passive smoking and both lung cancer and coronary heart disease, increasing the risk for each by near 25%. Secondhand smoking also does harm to babies and children which with an increased risk of respiratory infections, increased ruggedness of asthma symptoms, more frequent occurrence of chronic coughs, phlegm and wheezing, and increased risk of cot death and glue ear.(ASH1, 2011)2.3 The policy of UK Government?2.31 The ban of advertisingAdvertisement has high influence in propagating. Thus, prohibiting the advertising of cigarette is a useful way to control the consumption of tobacco. The Tobacco Advertising and Promotion get along which was enacted in 2003, prohibited virtually all forms of tobacco advertising and promotion, including print media and billboards, and sponsorship of sport was finally nix by July 2005. Moreover, as the ASH (2011) said that the UK Government estimated that banning cigarette advertising would lead to the decrease of consumption of around 3%.2.32 The prohibiting in public placeSmoking in public places and workplaces is right off banned by law in UK. Except some places which include guest bedrooms in hotels and sure rooms in care homes, hospices and prisons. (ASH, 2011)Other public place and work place must no smoking such as restaurant. One typical example is Pizza Hut restaurants where smoking has no daylong been permitted in all the 350 restaurants since early this year (Smoking in public place, 2003)3. Discussions3.1 TaxationRaising tobacco prices through increase taxation is a useful means. Smoking forever and a day bad for our health and a atomic reactor of young people also smoke. Controlling consumption of tobacco by taxation is probably the most effective (and certainly the most cost-effective) means. As we can see in Table2, the tax of cigarette was alw ays increasing from 1990 to 2011.So when the price of tobacco increase, the demand of cigarette follows decrease. According to ASH 3the Treasury earned 10.5 one million million million in revenue from tobacco duties for the financial year 2009-2010 (including VAT) Thus, government can control the consumption of cigarette reducing so that decreases the death of people who died because of smoking.From a data The UK tax paying(a) tobacco food market is worth around 14 billion. The market is dominated by cigarettes, which represent 93.3% of the total duty paid market(ASH,2011), we can imagine how great extent the government increases the duty of cigarette. The taxation is about 76% of the price of a packet of cigarettes. The price of cigarettes has a major effect on cigarette consumption. Higher tobacco taxes cut out smoking and smoking related sickness people, so the number of smoker will mown down. Some people who have no high income will stop smoking, or never leap because of t he high cost.3.2AdvertisingAdvertisement is a very useful way to propagate. Thus, the government in UK is aware liberal of this fact and declares martial law of advertising. AS the ASH said that the Government estimated that the ban on tobacco advertising in the UK would lead to a drop in consumption of around 3%, livery approximately 3000 lives in the long term.(ASH,2010)Most conspicuous forms of tobacco advertising and promotion in the UK were banned and all the parcel of land of cigarette must be normal not magnificent.All forms of tobacco advertising and promotion are banned in the UK with the exception of limited advertising at the point of sale. This will shoemakers last when a ban on the display of tobacco products in large shops enters into force from 6 April 2012. diminished shops will have until April 2015 to comply with the law.(ASH3, 2011)Moreover, the UK government introduced picture warnings on cigarette packs in October 2008. The picture of package will make smok er feel nausea because the picture is about what result after people smoking such as yellow tooth or black lung. This is also the efficacious means to reduce the consumption of tobacco and the number of smokers.4. Conclusion4.1 SummaryAll in all, smoking has more disadvantages than advantages even only harm and no good. As we all know, teenager smoking is also a task which must be solved. It is easy to get disease and smokers often live in a in brief life. So governments try various devices to restrain the consumption of cigarette to resolve these problems.4.2 RecommendationIn ready to efficaciously control the consumption of cigarette, government can set up more festival about banning smoking and propagate some preferential policy. For example, when people agree to give up smoking, the someone will get corresponding subsidize.5. ReferenceAnderton.A(2008) Economics(5th Edition) Harlow Person EducationASH1(2011)onlineSmoking statistics Available athttp//www.ash.org.uk/information /facts-and-stats/fact-sheetsAccessed at 16/12/2011ASH2 (2011)onlineTobacco regulation Available athttp//www.ash.org.uk/information/facts-and-stats/fact-sheetsAccessed at 16/12/2011ASH3 (2011)onlineTobacco economic science Available athttp//www.ash.org.uk/information/facts-and-stats/fact-sheetsAccessed at 16/12/2011Neuroscience and Biobehavioral Reviews. onlineVolume 29, Issue 6. 2005 1021-1034 Available at http//www.sciencedirect.com/science/article/pii/S0149763405000874Accessed at 7/12/2011Parliamentary Office of Science and Technology (2003) Smoking in public place Available at http//www.parliament.uk/documents/post/pn206.pdf