Economics of tobacco use

Quick Facts

Taxation is an effective method of reducing tobacco consumption, especially among youth and low-income smokers.
The World Bank estimates that a 10% increase in the price of cigarettes worldwide would cause 40 million smokers to quit and prevent 10 million tobacco-related deaths.
In a 2005 public opinion survey, 64% of Albertans supported higher tobacco taxes as a means to prevent youth smoking.
In 2002, tobacco use was estimated to cost the Alberta economy $1.8 billion, which included $470.6 million in direct health-care costs.
The cost of tobacco use in Alberta due to loss of productivity in the workplace was estimated to be approximately $1.3 million in 2002.5
Fire damage due to smoking cost Albertans $46 million in property damage, and led to 40 deaths and over 280 injuries in 2003.
In Alberta, a pack-a-day smoker spends $3,984 on cigarettes each year, based on an average cost of $10.91 per pack.
In April 2007, Alberta’s cigarette tax was $37.00 per carton of 200 cigarettes, seventh highest among the provinces and territories.
In 2006, legislation was passed that allowed retailers to only sell tobacco marked for sale in Alberta. Tobacco intended for sale in other provinces cannot be sold in Alberta.

Source: Tobacco Basics Handbook Third Edition, 2008. Alberta Health Services.

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