Drug abuse economics: cost estimates and policy implications

This paper presents a brief summary of the results of a study estimating the economic costs of drug abuse in Australia and commentary on these results. It proceeds to draw some conclusions about the extent of the potential benefits of drug harm minimization programmes and of the types of programmes which might yield high rates of return. It applies some standard analyses normally used in the areas of industry and taxation economics to draw conclusions in regard to tobacco advertising, competition between federal and state governments in drug policies and the hypothecation (earmarking) of taxes to drug programmes.