With about 8 million people dying each year as a result of the tobacco pandemic, it is one of the world's most serious public health problems. More than 7 million are connected to tobacco use directly, whereas 1.2 million are linked to nonsmokers exposed to secondhand smoke. Tobacco in any form is harmful, and there is no such thing as a safe amount of exposure to tobacco. Smoking is the most widely used tobacco product in the planet. Pipe tobacco, various smokeless tobacco products, cigars, cigarillos, roll tobacco, pipe tobacco, Bidis, and Crete are all examples of tobacco products. Hookah cigarettes are equally as harmful to your health as traditional cigarettes. The health risks associated with hookah tobacco use, on the other hand, are commonly misunderstood by consumers. Cigarettes that aren't made with tobacco are extremely addictive, highly addicting and harmful to one's health. Several carcinogenic substances included in smokeless cigarettes increase the risk of head and neck cancer, esophageal cancer, oral cavity cancer (including cancers of the mouth, tongue, lips, and gums), and various dental diseases. More than 80% of the world's 1.3 billion tobacco users live in low- and middle-income countries, where tobacco use is associated with a higher burden of disease and mortality. Smoking contributes to poverty by diverting funds away from basic requirements such as food and shelter and toward cigarettes. (Killebrew & Myrick, 2007).
Tobacco and tobacco products have a major environmental effect all over the world. It starts with land preparation for tobacco growing and continues with product manufacturing, marketing, and consumption. Tobacco manufacturing produces a large quantity of trash. The firm creates around 2.55 million tonnes of industrial waste, the majority of which includes nicotine and other dangerous substances, according to the most recent accurate figures for 1995. These harmful effects can only be mitigated today, with worldwide tobacco output growing since 1995. Tobacco product packaging and labelling necessitates a large investment in terms of the paper, polymers, and chemicals utilised by producers. Because of the tobacco business, there are millions of mounds of packaging garbage. The most serious issue with this rubbish dump is that it creates a variety of health issues for individuals. It is critical to have solid economic policies for the tobacco sector.
Neo classical model
Supply and demand models are used in neoclassical economics to determine how goods and services are created, consumed, and valued. The cost of production, according to classical economics, is the most important factor in determining a product's price. The price of a product is determined by the consumer's appraisal of its worth, according to neoclassical economic theory. The difference between the real cost of production and the selling price is known as economic surplus. The cost of production, according to classical economics, is the most important factor in determining a product's price. The price of a product is determined by the consumer's appraisal of its worth, according to neoclassical economic theory. The disparity between them is referred to as the difference between the actual and the potential. cost of product and the surplus value. (Tabaco, 2015).
This model follows following theories-
The most efficient way for the economic system to allocate resources
The money seller in the Neoclassical model is assumed to be rational and to have correct market knowledge. The market produces a balance that optimises the profits of the money sellers, given the law of diminishing returns, many sellers purchasing and selling, and the flexibility to enter and quit the market. This is the most crucial element that influences the tobacco industry's growth. Despite the health hazards, the tobacco business is relatively old, and many people are addicted to it. (J Patrick Raines & Leathers, 2003).
Methods to achieve this-
Behavioural Economics
The behavioural economy is the branch of economics that studies how psychological factors and economic aspects interact in the real world. It is assumed that the majority of individuals would finish the alternatives and design the best developed self-promoting solutions based on these options. Behavioral economics are being used in cigarette regulations because they give quantitative evidence for human decision-making. Tobacco control can promote public health, minimise the risk of unintentional cigarette use, and shift consumer behaviour toward less harmful options.
The difficulty in the economic context is one of the phenomena investigated in behavioural economics, and the psychological study of human decision to research the market's outcomes revealing a common cognitive and recognised constraint and complexities that some individuals ignore more conventional Use. Model of the economy Jonathan Gruber and Kosei, which may be advocated for taxation, according to the behavioural economy technique. In addition to tremendous ringtones, suffering, and death, smoking cigarettes is held in health spending, performance, damage, environmental damage, environmental waste and dangerous agricultural products, environmental waste and harmful agricultural employees. Tobacco businesses may make such large profits by developing low-cost products, thus just a small investment in fundamental chemicals is required. (Hong, 2014).
Cigarette use and growth rates are influenced by a number of factors. There are still a handful of them in the fact that the global government's tax expenses for cigarettes remain consistent. Personally, I believe that the tobacco business should adopt behavioural policies as a behavioural economy (also known as the behavioural economy). It is not the same as the expected standard financial theory. The behavioural economy is concerned with the limits of financial agents' rationality. Behavior mode is created using psychology, neurology, and fine economic theory. The study of how individuals make decisions in markets and the factors that impact public opinion is known as behavioural economics. Behavioural economics is a branch of economics that associates the psychology and economics for investigating the reason of why individuals sometimes take irrational judgments to discuss their behaviour doesn't always match economic predictions.
This report has presented the discussion on the production and consumption of tabaco industry. To present the economic theory the analysis of neo classical theory and behavioural economical model was presented. Further the analysis of these models in respect to the production and consumption of tabaco industry was presented. Cigarette use and growth rates are influenced by a number of factors. There are still a handful of them in the fact that the global government's tax expenses for cigarettes remain consistent. Personally, I believe that the tobacco business should adopt behavioural policies as a behavioural economy (also known as the behavioural economy). It is not the same as the expected standard financial theory. The behavioural economy is concerned with the limits of financial agents' rationality. Behavior mode is created using psychology, neurology, and fine economic theory. The study of how individuals make decisions in markets and the factors that impact public opinion is known as behavioural economics. Behavioural economics is a branch of economics that combines psychology and economics to investigate why individuals sometimes make irrational judgments and why and how their behaviour doesn't always match economic predictions. At the end of report, the policy for tabaco industry was given and justification of recommending the approach was also given.
Author: Dwayne Smith
Profile: Economics Assignement Help Expert At LiveWebTutors
Country: United Kingdom
