The dual impact of tobacco spending: crowding out essentials and crowding in addictive behaviors

Abstract Tobacco use, a major preventable risk factor for premature death and morbidity, profoundly shapes individual and household decision-making. Tobacco spending in lower-income economies exacerbates economic strain of the households. To accommodate tobacco costs, many households are forced to r...

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Main Authors: Elvina Merkaj, Drini Imami, Jeffrey Drope
Format: Article
Language:English
Published: Nature Portfolio 2025-07-01
Series:Scientific Reports
Subjects:
Online Access:https://doi.org/10.1038/s41598-025-08648-1
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author Elvina Merkaj
Drini Imami
Jeffrey Drope
author_facet Elvina Merkaj
Drini Imami
Jeffrey Drope
author_sort Elvina Merkaj
collection DOAJ
description Abstract Tobacco use, a major preventable risk factor for premature death and morbidity, profoundly shapes individual and household decision-making. Tobacco spending in lower-income economies exacerbates economic strain of the households. To accommodate tobacco costs, many households are forced to reduce essential expenditures on health and education—a phenomenon known as the crowding out effect. This study uses data from Albania’s national Household Budget Survey and applies a three-stage least squares method with instrumental variables to estimate Engel curves to shed light on how tobacco use influences household financial decisions. The findings reveal that tobacco spending significantly reduces expenditures on essential needs such as health, education, housing, and clothing. Additionally, tobacco use shows a positive correlation with alcohol spending, revealing another negative influence of an addictive behavior on household resource allocation. The results emphasize the urgent need for stronger tobacco control measures promote better economic decision-making within households. Such measures would enhance public health, improve economic stability, and encourage more equitable resource distribution.
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spelling doaj-art-563f3866130c4805b2377aa86d89186c2025-08-20T03:46:03ZengNature PortfolioScientific Reports2045-23222025-07-0115111110.1038/s41598-025-08648-1The dual impact of tobacco spending: crowding out essentials and crowding in addictive behaviorsElvina Merkaj0Drini Imami1Jeffrey Drope2Polytechnic University of MarcheAgriculture University of TiranaEconomics for Health, Johns Hopkins Bloomberg School of Public HealthAbstract Tobacco use, a major preventable risk factor for premature death and morbidity, profoundly shapes individual and household decision-making. Tobacco spending in lower-income economies exacerbates economic strain of the households. To accommodate tobacco costs, many households are forced to reduce essential expenditures on health and education—a phenomenon known as the crowding out effect. This study uses data from Albania’s national Household Budget Survey and applies a three-stage least squares method with instrumental variables to estimate Engel curves to shed light on how tobacco use influences household financial decisions. The findings reveal that tobacco spending significantly reduces expenditures on essential needs such as health, education, housing, and clothing. Additionally, tobacco use shows a positive correlation with alcohol spending, revealing another negative influence of an addictive behavior on household resource allocation. The results emphasize the urgent need for stronger tobacco control measures promote better economic decision-making within households. Such measures would enhance public health, improve economic stability, and encourage more equitable resource distribution.https://doi.org/10.1038/s41598-025-08648-1Tobacco spendingCrowding out effectAlbania
spellingShingle Elvina Merkaj
Drini Imami
Jeffrey Drope
The dual impact of tobacco spending: crowding out essentials and crowding in addictive behaviors
Scientific Reports
Tobacco spending
Crowding out effect
Albania
title The dual impact of tobacco spending: crowding out essentials and crowding in addictive behaviors
title_full The dual impact of tobacco spending: crowding out essentials and crowding in addictive behaviors
title_fullStr The dual impact of tobacco spending: crowding out essentials and crowding in addictive behaviors
title_full_unstemmed The dual impact of tobacco spending: crowding out essentials and crowding in addictive behaviors
title_short The dual impact of tobacco spending: crowding out essentials and crowding in addictive behaviors
title_sort dual impact of tobacco spending crowding out essentials and crowding in addictive behaviors
topic Tobacco spending
Crowding out effect
Albania
url https://doi.org/10.1038/s41598-025-08648-1
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