ANALYSIS OF CIGARETTE DEMAND AMONG POOR HOUSEHOLDS IN INDONESIA: AN ISLAMIC ECONOMIC APPROACH

Authors

Yusnia Monica, Department of Economics, Faculty of Economics and Business, Universitas Indonesia, Depok, IndonesiaFollow
Abdillah Ahsan, Department of Economics, Faculty of Economics and Business, Universitas Indonesia, Depok, IndonesiaFollow
Triasih Djutaharta, Demographic Institute, Department of Economics, Faculty of Economics and Business, Universitas Indonesia, Depok, IndonesiaFollow
Nadira Amalia, Department of Economics, Faculty of Economics and Business, Universitas Indonesia, Depok, IndonesiaFollow

Abstract

Increasing Indonesia’s health and economic burdens generated by smoking habit require immediate stakeholder responses to reduce cigarette consumption. This study aims to examine and compare the changes in smoking behavior (i.e., the smoking status and the number of cigarettes consumed monthly) among zakat recipients (mustahik) and zakat payers (muzaki) caused by cigarette prices and income changes. Using a dataset from SUSENAS 2018 and conducted under kifayah approach (a poverty line approach in Islamic economics that will allow the observers to differentiate between muzaki and mustahik), this study employed two-part regression models. Results showed that an increasing income escalated cigarette consumption (ß = 0.761; 95% CI = 0.761, 0.762), but increasing cigarette prices reduced cigarette consumption (ß = -0.682; 95% CI = -0.683, -0.682). Mustahik household is more responsive toward changes as compared to muzaki ones. Mustahik household sensitivity towards cigarettes has important implications for zakat institutions in ensuring and monitoring zakat funds utilization among mustahik.

Bahasa Abstract

Meningkatnya beban kesehatan dan ekonomi akibat merokok di Indonesia menuntut tanggapan segera dari seluruh pemangku kepentingan dalam mengurangi konsumsi rokok. Penelitian ini bertujuan untuk mengkaji perubahan perilaku merokok pada penerima zakat (mustahik) yang disebabkan oleh perubahan harga rokok dan pendapatan. Menggunakan dataset dari SUSENAS 2018 dan memiliki pendekatan had kifayah, penelitian ini menggunakan regresi model dua bagian dan menemukan bahwa peningkatan pendapatan menyebabkan peningkatan konsumsi rokok, sedangkan kenaikan harga rokok menurunkan konsumsi rokok. Rumah tangga mustahik lebih responsif terhadap perubahan. Kepekaan rumah tangga mustahik terhadap rokok memiliki implikasi penting bagi lembaga zakat dalam memastikan dan memantau pemanfaatan dana zakat di kalangan mustahik.

Recommended Citation

Monica, Yusnia; Ahsan, Abdillah; Djutaharta, Triasih; and Amalia, Nadira (2022) "ANALYSIS OF CIGARETTE DEMAND AMONG POOR HOUSEHOLDS IN INDONESIA: AN ISLAMIC ECONOMIC APPROACH," Jurnal Ekonomi Kesehatan Indonesia: Vol. 7: No. 2, Article 7.
DOI: 10.7454/eki.v7i2.5703
Available at: https://scholarhub.ui.ac.id/eki/vol7/iss2/7