The Economic Value of WTAMU Main Report

The Centers for Disease Control and Prevention (CDC) reports the percentage
of adults who are current smokers by state. 55 We use this information to create
an index value by which we adjust the national prevalence data on smoking to
each state. For example, 14.3% of Texas adults were smokers in 2016, relative to
15.5% for the nation. We thus apply a scalar of 0.92 to the national probabilities
of smoking in order to adjust them to the state of Texas.
ALCOHOL DEPENDENCE
Although alcohol dependence has large public and private costs, it is difficult
to measure and define. There are many patterns of drinking, ranging from abstinence
to heavy drinking. Alcohol abuse is riddled with social costs, including
health care expenditures for treatment, prevention, and support; workplace
losses due to reduced worker productivity; and other effects.
Figure A10.2 compares the percentage of adults, 18 and older, that abuse or
depend on alcohol by education level, based on data from the Substance Abuse
and Mental Health Services Administration (SAMHSA). 56 These statistics give
an indication of the correlation between education and the reduced probability
of alcohol dependence. Adults with an associate degree or some college have
higher rates of alcohol dependence than adults with a high school diploma or
lower. Prevalence rates are lower for adults with a bachelor’s degree or higher
than those with an associate degree or some college. Although the data do not
maintain a pattern of decreased alcohol dependence at every level of increased
education, we include these rates in our model to ensure we provide a comprehensive
view of the social benefits and costs correlated with education.
FIGURE A10.2: PREVALENCE OF
ALCOHOL DEPENDENCE OR ABUSE
BY EDUCATION LEVEL
8%
6%
4%
2%
0%
Source: Centers for Disease Control and Prevention.
FIGURE A10.3: PREVALENCE OF
OBESITY BY EDUCATION LEVEL
50%
91+84+100+99
Less than high school
High school graduate
Associate degree or some college
Bachelor’s degree
OBESITY
The rise in obesity and diet-related chronic diseases has led to increased attention
on how expenditures relating to obesity have increased in recent years.
The average cost of obesity-related medical conditions is calculated using
information from the Journal of Occupational and Environmental Medicine,
which reports incremental medical expenditures and productivity losses due
to excess weight. 57
Data for Figure A10.3 is derived from the National Center for Health Statistics
which shows the prevalence of obesity among adults aged 20 years and over
55 Centers for Disease Control and Prevention. “Current Cigarette Use Among Adults (Behavior Risk Factor Surveillance
System) 2016.” Behavioral Risk Factor Surveillance System Prevalence and Trends Data, 2016.
56 Substance Abuse and Mental Health Services Administration. “Table 5.5B - Alcohol Use Disorder in the Past Year
among Persons Aged 18 or Older, by Demographic Characteristics: Percentages, 2015 and 2016.” SAMSHA, Center
for Behavioral Health Statistics and Quality, National Survey on Drug Use and Health, 2015 and 2016.
57 Eric A. Finkelstein, Marco da Costa DiBonaventura, Somali M. Burgess, and Brent C. Hale, “The Costs of Obesity
in the Workplace,” Journal of Occupational and Environmental Medicine 52, no. 10 (October 2010): 971-976.
40%
30%
20%
10%
0%
99+100+69
High school graduate
Some college
College graduate
Source: Derived from data provided by the National
Center for Health Statistics.
Appendix 10: Social Externalities
106