The Economic Costs of Alcohol and
Drug Abuse in Oregon in 2006
Robert Whelan
Alec Josephson
Jake Holcombe
ECONorthwest
888 SW Fifth Avenue
Suite 1460
Portland, Oregon 97204
503-222-6060
www.econw.com
January 14, 2008
The Economic Costs of Alcohol and Drug Abuse in
Oregon in 2006
Summary
The consequences of alcohol and drug abuse extend well beyond the individual
user. Indeed, family members, neighbors, and entire communities are affected. Substance
abuse leads to turmoil for friends and family members of its victims. It results in the
premature death and serious illnesses of loved ones. It forces governments to divert
scarce resources from other programs to address the needs of abusers and the problems
they create. And finally, it is often the root cause of violent and property crimes, as well
as impaired drivers. These human and social consequences are significant and most
evidence suggests that, given the incidence of alcohol and drug use in this state, they are
greater in Oregon than the rest of the nation. They also come at a great economic cost—
one that is shared by all who live and work in Oregon.
ECONorthwest was asked by Workdrugfree, Oregon Nurses Foundation and
Associated Oregon Industries to estimate the economic costs of alcohol and drug abuse in
Oregon. The key findings of this analysis are:
•
Total direct economic costs from substance abuse in Oregon totaled
approximately $5.93 billion in 2006. These costs fall into the following
three categories:
°
$813 million in healthcare costs related to alcohol and drug abuse
programs, and the adverse medical consequences associated with
abuse.
°
$4.15 billion in lost earnings as a result of foregone productivity
by users who die prematurely, are sick, fail to come to work, or are
incarcerated as a result of alcohol and drug abuse, and by victims
of crimes committed by drug and alcohol abusers.
°
$967 million in other costs such as violent, property, and
consumption-related crimes; expenditures on alcohol and dru