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JEL Classification System

C63, I18

Abstract

Smoking continues to be one of the leading causes of death and disability around the world. Recent health studies, however, have reported that these diseases are more likely to be due to the smoke from burning rather than the actual nicotine content. This study uses a cost-of-illness approach in estimating the cost of smoking-related illness in the Philippines and calculating the potential reduction in costs if a significant portion of the adult smoking population switches to the exclusive use of non-combusted alternatives (NCAs), which drastically reduces the risk of contracting smoking-related diseases. This study finds that cost reductions in the Philippines could amount to approximately $3.4 billion or 0.87% of the Gross Domestic Product, assuming 50% of the adult smoking population switch to NCAs and that they experience a 70% lower likelihood of contracting smoking-related illnesses. In consideration of segments of the adult smoking population who are unable to cease smoking activity, NCAs may potentially serve as a less harmful option.

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