IDEAS home Printed from https://ideas.repec.org/a/spr/eujhec/v18y2017i7d10.1007_s10198-016-0835-9.html
   My bibliography  Save this article

The social cost of drugs in France in 2010

Author

Listed:
  • Pierre Kopp

    (Panthéon-Sorbonne University (Paris I))

  • Marysia Ogrodnik

    (Panthéon-Sorbonne University (Paris I))

Abstract

The social cost of drugs is the monetary cost of both the consequences of their trade and their consumption. In this paper, drugs considered are tobacco and alcohol, which are legal, plus those that are illegal. The social cost is the sum of the external cost: value of loss in quality of life, value of years of life lost and value of loss in productivity, plus public expenditure. Public expenditure consists of public spending on medical care, prevention, and law enforcement, minus savings from unpaid pensions and taxes levied on tobacco and alcohol. The parameters for the calculations have used the recommendations of a French governmental working group (2013) Quinet, L’évaluation socioéconomique des investissements publics [Internet], Centre d’Analyse Stratégique, 2013, http://www.strategie.gouv.fr/sites/strategie.gouv.fr/files/archives/CGSP_Evaluation_socioeconomique_17092013.pdf , and the health data were derived from the scientific literature. The social costs are €122 billion for tobacco, €118 billion for alcohol, and €8.7 billion for illegal drugs. The largest fraction of the costs (53, 56, and 31 %, respectively) derives from the number of deaths, 79,000 for tobacco, 49,000 for alcohol, and 1600 for illegal drugs, given the high cost of a year of life lost (€115,000). The external cost corresponds to 86, 97, and 68 % of the social cost, respectively, for tobacco, alcohol, and illegal drugs. The annual drug-related net expenditure represents €13.9, €3.0, and €2.3 billion, respectively, for tobacco, alcohol, and illegal drugs. The tax revenues on tobacco and alcohol, €10.4 and €3.2 billion, represent less than half of the corresponding healthcare costs, which are €25.9 and €7.7 billion.

Suggested Citation

  • Pierre Kopp & Marysia Ogrodnik, 2017. "The social cost of drugs in France in 2010," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(7), pages 883-892, September.
    • Handle: RePEc:spr:eujhec:v:18:y:2017:i:7:d:10.1007_s10198-016-0835-9
    DOI: 10.1007/s10198-016-0835-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10198-016-0835-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10198-016-0835-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alan D. Lopez & Colin D. Mathers & Majid Ezzati & Dean T. Jamison & Christopher J. L. Murray, 2006. "Global Burden of Disease and Risk Factors," World Bank Publications - Books, The World Bank Group, number 7039.
    2. Douglas M. Walker & Shannon M. Kelly, 2011. "The Roots Of Modern ‘Social Cost Of Gambling’ Estimates," Economic Affairs, Wiley Blackwell, vol. 31(1), pages 38-42, March.
    3. Koopmanschap, Marc A. & Rutten, Frans F. H. & van Ineveld, B. Martin & van Roijen, Leona, 1995. "The friction cost method for measuring indirect costs of disease," Journal of Health Economics, Elsevier, vol. 14(2), pages 171-189, June.
    4. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anna Maccagnan & Tim Taylor & Mathew P. White, 2020. "Valuing the Relationship Between Drug and Alcohol Use and Life Satisfaction: Findings from the Crime Survey for England and Wales," Journal of Happiness Studies, Springer, vol. 21(3), pages 877-898, March.
    2. Iluminada Fuertes-Fuertes & J. David Cabedo & Inmaculada Jimeno-García, 2019. "Capturing the Invisible Wealth in Nonprofits to Overcome Myopic Perceptions," Sustainability, MDPI, vol. 12(1), pages 1-18, December.
    3. Alexander S. Skorobogatov, 2021. "The effect of alcohol sales restrictions on alcohol poisoning mortality: Evidence from Russia," Health Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 1417-1442, June.
    4. Jakob Manthey & Syed Ahmed Hassan & Sinclair Carr & Carolin Kilian & Sören Kuitunen-Paul & Jürgen Rehm, 2021. "What are the Economic Costs to Society Attributable to Alcohol Use? A Systematic Review and Modelling Study," PharmacoEconomics, Springer, vol. 39(7), pages 809-822, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marie‐Josée J. Mangen & Michael B. Batz & Annemarie Käsbohrer & Tine Hald & J. Glenn Morris & Michael Taylor & Arie H. Havelaar, 2010. "Integrated Approaches for the Public Health Prioritization of Foodborne and Zoonotic Pathogens," Risk Analysis, John Wiley & Sons, vol. 30(5), pages 782-797, May.
    2. Zaid Chalabi & Sari Kovats, 2014. "Tools for developing adaptation policy to protect human health," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 19(3), pages 309-330, March.
    3. Ziggy MacDonald & Stephen Pudney, 2001. "Illicit drug use and labour market achievement: evidence from the UK," Applied Economics, Taylor & Francis Journals, vol. 33(13), pages 1655-1668.
    4. Abel Brodeur, 2012. "Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans," Working Papers halshs-00664269, HAL.
    5. Hammar, Henrik & Carlsson, Fredrik, 2001. "Smokers' Decisions To Quit Smoking," Working Papers in Economics 59, University of Gothenburg, Department of Economics.
    6. Jose Apesteguia & Miguel Ballester, 2009. "A theory of reference-dependent behavior," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(3), pages 427-455, September.
    7. Nan Yang & Yong Long Lim, 2018. "Temporary Incentives Change Daily Routines: Evidence from a Field Experiment on Singapore’s Subways," Management Science, INFORMS, vol. 64(7), pages 3365-3379, July.
    8. Kareen Rozen, 2010. "Foundations of Intrinsic Habit Formation," Econometrica, Econometric Society, vol. 78(4), pages 1341-1373, July.
    9. Humphreys, Brad & Ruseski, Jane & Zhou, Li, 2015. "Physical Activity, Present Bias, and Habit Formation: Theory and Evidence from Longitudinal Data," Working Papers 2015-6, University of Alberta, Department of Economics.
    10. Lurås, Hilde, 2009. "A healthy lifestyle: The product of opportunities and preferences," HERO Online Working Paper Series 2001:11, University of Oslo, Health Economics Research Programme.
    11. Elisabeth Gugl & Linda Welling, 2007. "The Early Bird gets the Worm? Birth Order Effects in a Dynamic Model of the Family," Department Discussion Papers 0710, Department of Economics, University of Victoria.
    12. Joseph P. Newhouse, 2021. "An Ounce of Prevention," Journal of Economic Perspectives, American Economic Association, vol. 35(2), pages 101-118, Spring.
    13. Freeman, Steven F., 1997. "Good decisions : reconciling human rationality, evolution, and ethics," Working papers WP 3962-97., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    14. Iris Arends & Ute Bültmann & Willem van Rhenen & Henk Groen & Jac J L van der Klink, 2013. "Economic Evaluation of a Problem Solving Intervention to Prevent Recurrent Sickness Absence in Workers with Common Mental Disorders," PLOS ONE, Public Library of Science, vol. 8(8), pages 1-1, August.
    15. Kristien Werck & Bruno Heyndels & Benny Geys, 2008. "The impact of ‘central places’ on spatial spending patterns: evidence from Flemish local government cultural expenditures," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 32(1), pages 35-58, March.
    16. Carlin, Paul S. & Kidd, Michael P. & Ulubaşoğlu, Mehmet A., 2013. "Does legal heritage affect obesity? The channel of motor vehicle dependence," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 621-633.
    17. Miguel Godinho de Matos & Pedro Ferreira, 2020. "The Effect of Binge-Watching on the Subscription of Video on Demand: Results from Randomized Experiments," Information Systems Research, INFORMS, vol. 31(4), pages 1337-1360, December.
    18. Manolis Galenianos & Rosalie Liccardo Pacula & Nicola Persico, 2012. "A Search-Theoretic Model of the Retail Market for Illicit Drugs," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(3), pages 1239-1269.
    19. Anderson, Soren T. & Laxminarayan, Ramanan & Salant, Stephen W., 2012. "Diversify or focus? Spending to combat infectious diseases when budgets are tight," Journal of Health Economics, Elsevier, vol. 31(4), pages 658-675.
    20. Tekin, Erdal, 2002. "Employment, Wages, and Alcohol Consumption in Russia: Evidence from Panel Data," IZA Discussion Papers 432, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Social cost; Tobacco; Alcohol; Drugs;
    All these keywords.

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eujhec:v:18:y:2017:i:7:d:10.1007_s10198-016-0835-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.