Smoking Reduction - Example

Smoking Reduction Year In United Kingdom had to face the awful truth: deaths are caused by smokingmore than anything else as the number of people who died that year reached about 80,000. The entire families suffer from this deadly habit - hospitals on the territory of the UK see the results of secondary smoking through children’s diseases, the number of which is over 10,000 a year. Nowadays United Kingdom is the home for 8 million smokers (Sloman, Alison and Garratt, 2012). The United Kingdom government is targeted at discourageing people from smoking by means of setting high tax rates, as well facilitation of local trading standards through providing guidelines for officers of HM Revenue & Customs. This cooperation is aimed at the law enforcement against tobacco being faked or smuggled (Sloman, Alison and Garratt, 2012). Among the countries that keep up the fight with tobacco Australia has been viewed as one of the most successful. At the moment about 12,8 percent of population over 15 are engaged in smoking on daily basis and this number is a half of the rates of 1991 (over 25 percent). This decrease of smokers was achieved basically by means of control of demand for cigarettes and tobacco products among consumers. The increase of taxes, smoke-free zones in public places, bans of tobacco advertising, disturbing graphic warnings on packs and anti-smoking campaigns manged to blacken the smoking appeal and played a crucial role in smoking rates reduction. Along with these strategies applied in Australia and all over the world, practically nothing has been done in terms of supply and sale control of tobacco products. And this option needs to be activated. The number of shops selling tobacco is still surprising and almost every corner in the neighbourhood is welcoming smokers with a variety of cigarettes. And here the quantity one will buy as well as the time and seller is practically out of control. Not-for-profit suppliers One of the possible models of regulation is implied in transformation industry of tobacco from for-profit companies provided with the mandate of selling more tobacco to not-for-profit corporation provided with the mandate of public health promotion. Buying existing robacco corporations at fair market value can bring this metamorphosis to life. Thus the main aim of renewed monopoly is not to stand in the way but on the contrary - to support and assist strategies of demand reduction; the tobacco products would be severely controlled as well as production and sales and this step would help in discourageing the habit. However this approach is to meet obstacles such as huge funds that are required for buying this corporations which are very profitable and legal issues that are to follow the operations of transition. Price caps The policy of price cap regulation being suggested is implied in establishing maximum prices by cigarette corporations for their products. Taking into account the experience of high-income countries such as Australia, the tobacco corporations managed to raise prices along with increase of taxes. This resulted in maintaining profits of the corporations in circumstances of reduced sales. Limiting retail licences In terms of marketing mix the major role is played by “Place”. The stores selling tobacco products are in majority especially in areas of low socio-economic communities, regardless of increased smoking rates adjustments. The tobacco retailers are characterized with density and proximity to schools and this fact influences the increase of cigarettes purchases among youth. Places such as convenience stores, clubs and pubs are preferred generally by light smokers thus making these venues influential for purchasing impulse. Economic Benefits of Smoking Reduction Experts and researchers in the field of economy predict the general benefit considering monetary terms of becoming smoke-free as approximately 2.5 billion a year. Thus it goes without saying smoke-free policy is sure to be beneficial for the national economy of the UK. In this case, analysis indicates that reducing smoking to minimum is to enhance the hospitality business. Nevertheless, there has been arguments about smoking reduction impacts on bars and restaurants, though reliable evidence of this doesn’t exist (Sloman, Alison and Garratt, 2012). Economic Theories of Demand The myopic addiction model states that tobacco consumers are considered short-sighted. Theorists of myopic addiction offer an idea that income and price are to be influential for smoking uptake but nevertheless as long as patterns of addicted smoking are established, people have tendency of ignoring health and monetary costs in the future (Sloman, Alison and Garratt, 2012). The rational addiction model is in contrast with the above mentioned theories as it rejects the idea of myopic behaviour of smokers. Tobacco addicts do realize the costs and smoking is the rational choice, and pros and cons are assessed.   The Law of demand discusses the theory that in case factors do not change (except the price), the higher the price, the higher would be demanded quantity. Nevertheless, prices within tobacco industry experienced increase and the demand didn’t seem to change (Sloman, Alison and Garratt, 2012). The figure below is to describe this theory: Figure 1. As it can be seen from the diagram above because of the price increase, the tobacco demanded quantity goes down along the curve of demand from a to b. Price elasticity of demand is the ratio describing relations between the changes in price and change in demanded quantity. In case the minimum price is established for a pack of cigarettes it is to influence the retail price. If the demand is inelastic, the tobacco supply is to grow whereas the price is to fall. As a result the producers are to face income decrease (Sloman, Alison and Garratt, 2012). The sound measure for the government to be applied is to establish extra tax in amount of Ј1.00 on each tobacco item sold and on each pack of cigarettes, nevertheless the market on a local level might be significantly competitive in terms of large numbers of vendours and a retailer might be afraid to lose sales. And as a result the price is raised up to 50 p and balance of 50 p is paid to the government (Saddam, 2015). In this situation the incidence is to be shared due to the fact that both parties are worse off. This idea is explained in Figure 2 below: Figure 2. Conclusion Among numerous debates related the finest policies, limitations and measures apllied in battle against smoking it goes without saying that exerts of the price are to cause a certain damage to the image of smoking and to impact the consumption of tobacco (Telegraph, 2015). Huge prices increase are to result in falls of consumption and this step is much more effective that all the other smoking-control policies. Apart from that, researchers come to conclusion that increasing taxes on tobacco products is the most efficient step to be taken by the government in order to reduce burdens with health smokers are sure to face. This approach is to be introduced and applied on the international level as the single anti-tobacco strategy (Telegraph, 2015). In pursuit of ensuring healthy future of the country all the measures and strategies, including setting high prices and taxes are to be accumulated and put together as the weapon to be targeted at tobacco industry. Due to the fact that many countries are involved in smoking-free efforts and seem to be successful, foreigners who became used to healthy way of life would hardly visit the country where this problem is neglected. Thus the indifference to the smoking epidemic is to have impacts on the overall image of the country as well as the economic performance as a result. More than that, anti-tobacco measures would be of a great help for low-income families, as not having money to buy expensive cigarettes would encourage to focus other aspects of life such as sports, volunteer and working (Telegraph, 2015). References Indirect taxes and subsidies. 2015. Indirect taxes and subsidies. [ONLINE] Available at:http://www.economicsonline.co.uk/Competitive_markets/Indirect_taxes_and_subsidies.html. [Accessed 14 June 2015]. Ibrahim Saddam. 2015. Ibrahim Saddam. [ONLINE] Available at:http://ibrahimsaddam.blogspot.com/. [Accessed 14 June 2015]. Price elasticity of demand for tobacco products - Tobacco In Australia. 2015.  Price elasticity of demand for tobacco products - Tobacco In Australia. [ONLINE] Available at: http://www.tobaccoinaustralia.org.au/13-1-price-elasticity-of-demand-for-tobacco-produc. [Accessed 14 June 2015]. Smoking Control Programmes for Adults. 2015. Smoking Control Programmes for Adults. [ONLINE] Available at:http://www.hpb.gov.sg/HOPPortal/programmes-article/2490. [Accessed 14 June 2015]. The Economic Impact Of Smoking Bans - Forbes. 2015. The Economic Impact Of Smoking Bans - Forbes. [ONLINE] Available at:http://www.forbes.com/2009/06/04/economic-impact-bars-restaurants-opinions-contributors-smoking-ban.html. [Accessed 14 June 2015]. Anti-smoking measures around the world - Telegraph. 2015. Anti-smoking measures around the world - Telegraph. [ONLINE] Available at:http://www.telegraph.co.uk/news/health/news/8371205/Anti-smoking-measures-around-the-world.html. [Accessed 14 June 2015]. Read More