Comprehensive Evaluation Of External Costs Of Tobacco Industry In Hunan Province

Tobacco industry plays an incredibly important role in worldwide countries, and its tax is typically one of the essential sources of fiscal revenues. China is the country with the most tobacco production and the most tobacco consumption. On one hand, the total taxes which tobacco industry achieved have been led to all industries of national economy for20years running. But on the other hand, the planting, baking, producing and consuming of tobacco have exacerbated the deterioration of ecological environment and the harms of human health and it also has strong negative characters.In November of2003, Chinese government formally signed the Framework Convention on tobacco control and this convention requires signatories to implement the tax policies to the tobacco products and to implement price policies at proper times. According to the welfare economics and the tax theory, to formulate the optimum tax policy will necessarily base on the external cost of product. This research results will provide the science basis for the formulation of optimum tobacco policy, as well as provide hazardous tobacco information of monetization for the society, and it will helpful for the citizens to control tobacco conscientiously, and contribute to improve social welfare standards.This paper applies the principles and methods of ecological economics, start from the courses of tobacco planting, baking, cigarette manufacturing and consumption, systematically discussed the external costs of Hunan tobacco industry and set up the comprehensive index system under the evaluation of tobacco industry. According to the existing statistical data, it also used the theories and methods of market value, analogy, concentration-loss, human capital, and shadow engineering, to estimate13indicators like atmospheric pollution and influences of human health. The main conclusions are as follows:(1) Selecting the year of2009as the calculation year, by the specific examples of calculations, the tobacco industry external cost loss of Hunan province in2009is67.5109×108yuan, which occupies0.52%GDP of Hunan capital of that year. According to the planting area and the tobacco output available of Hunan province in 2009, it can conclude that tobacco external cost per hectare on average is about7.01×104yuan/hm2and average consumption per cigarette external cost is about0.20yuan/stick. From the result of evaluation, the damages caused by the tobacco are not conducive to the modernization of agriculture development of our province. Meanwhile, it is not good for the establishment of resource-saving and environment-friendly society, which will lead to a bad influence to push forward the construction of "four modernizations two types.’(2) The tobacco external costs in the comprehensive assessment system of this paper, exterior cost of using agricultural chemicals is31.18×108yuan, tobacco roasted external costs1.7×108yuan, cigarette manufacturing external costs9.09×108yuan, and smoking external costs25.55×108yuan, respectively occupied in46.19%、2.52%、13.46%and37.83%external cost of tobacco industry of Hunan province. From these ratio we can see, the main dangers of the tobacco industry external costs focused on planting (46.19%) and consumption (37.83%), relevant departments of our government should emphasize the effective measures to control for this two sides.(3)The loss of human health resulted from the tobacco industry external cost of Hunan province in2009is14.21×108yuan and the passive smoking loss is25.47×108yuan. Harm on human body occupied58.78%of the damage of the tobacco industry external cost. The tobacco industry hazarded much to human health and it should be demanded adequate attention..