Investigating the Costs of Substance Abuse

Social, Prevention and Health Policy Research Profile: Dr. Jürgen Rehm

To develop effective public policy on issues such as substance use, accurate data are needed on the epidemiology (distribution and impact) of substance use problems and on intervention strategies. These data must cover both the effectiveness and the cost-effectiveness of initiatives to address substance use problems.

Dr. Jürgen Rehm, Co-Section Head, Public Health and Regulatory Policy, is a leader in generating and analyzing the scientific data needed to inform public policy on, for example, strategies to reduce alcohol- and tobacco-related harm. Dr. Rehm and his team evaluate the economic costs of substance use and abuse, provide exact data on epidemiology and give guidance on alcohol policy.

“For example, we provide data on both the benefits and the harm resulting from alcohol consumption,” says Dr. Rehm. “We also provide information on the dimensions of alcohol use underlying these effects, such as how alcohol is consumed and how much is consumed. This information is being used to inform a national strategy designed to reduce alcohol-related harm.”

Dr. Rehm was the lead investigator on the report The Costs of Substance Abuse in Canada 2002, which was released in spring 2006. Funded by the Canadian Centre for Substance Abuse and more than 10 other Canadian institutions, this landmark study investigated the impact of substance abuse on Canadian society. It estimated the effects of tobacco, alcohol and illegal drugs in terms of death, illness and economic costs in 2002.

The study revealed that substance abuse places a significant burden on the Canadian economy. It has both a direct impact on health care and criminal justice costs, and an indirect toll on productivity resulting from disability and premature death. The study showed that the total annual cost of substance abuse in Canada is $39.8 billion (based on 2002 data)—a cost of $1,267 to each Canadian.

“The methodology for this study is complex and it’s important to note that estimating social costs is not a simple accounting exercise,” says Dr. Rehm. “The study results are based on well-documented economic theories and hypotheses, and represent an accurate estimate of the impact of substance abuse in Canada. In all cases where we could have used different assumptions to estimate costs, we routinely adopted the most conservative approach.”

For Dr. Rehm, estimating social costs is only the first step. “Our next task is to develop a comprehensive analysis of avoidable costs,” he says. “Then we can provide valuable economic information that can be used as a foundation for a more efficient allocation of resources.”

Other countries are tapping into Dr. Rehm’s scientific expertise, and have asked him to provide epidemiological analyses to inform their public policy. Currently, Dr. Rehm works with the Pan American Health Organization (PAHO) to develop recommendations for alcohol interventions in Central and South America. He is also part of a team working to develop strategies to reduce premature alcohol-related death in Central and Eastern European countries that recently joined the EU.

Dr. Rehm’s research puts him in the forefront of reducing the harm that stems from substance abuse. The interventions and guidance that he and his team provide inform public policy that will have a profound benefit for many people, both in Canada and around the world.

Investigating the Costs of Substance Abuse

Related Links