MUNCIE, Ind. – Tobacco use by Hoosiers exacts a terrible penalty on Indiana's economy, costing the state in excess of $3.5 billion in the year 2000, says a study by a Ball State University researcher.

The study was done based on concern that Indiana's comparably high rates of tobacco use are placing a disproportionate economic burden on businesses, governments and citizens, said Patrick Barkey, director of the Bureau of Business Research.

He prepared the study for Tobacco Smart Indiana, which includes the American Heart Association, American Cancer Society and the American Lung Association.

The study found the average Hoosier smoker consumes about 135 packs annually, much higher than surrounding states except for Kentucky. About 26.3 percent of Indiana residents smoke regularly. The national average at 23.5 percent.

The study reviews statistical information including cigarette consumption, medical expenditures and work productivity. According to the study:

• About $2 billion is spent annually treating medical consequences of tobacco use.
• An estimated $1.4 billion in economic output is lost each year due to smokers' health-related early retirement from the labor force.
• About $86 million is spent on low-birth weight babies delivered to smoking mothers. Studies indicate that 2,500 fetal deaths each year are caused by smoking, and those babies who survive often have development problems.
• Another $11 million is lost annually due to higher absenteeism of workers who smoke.
• An estimated $11 million of property damage per year due to fires caused by careless smoking.

"The $3.5 billion represents a conservative estimate of total cost to the state since we do not include other, less well established, categories of cost," Barkey said. "These include the health effects of second-hand smoke, and the impact that smoking has on the productivity of workers during their working lives."

Economic losses due to smoking represents about 3 percent of the output of the state's economy, as measured by gross state product. With one in four Hoosiers smoking, excess costs on the state's economy is equivalent to the total economic output of a medium-sized city like Muncie, Kokomo and Terre Haute, he said.

"To the extent that these costs are shared by businesses and taxpayers, they make our state a less desirable place to live and do business," Barkey said.

He pointed out that programs aimed at bringing down smoking rates in Indiana should be a high priority from an economic standpoint.

By Marc Ransford, Communications Manager

(NOTE TO EDITORS: For more information, contact Barkey by e-mail at pbarkey@bsu.edu or by phone at (765) 285-5926.)