Abstract

The prevalence of tobacco consumption in Indonesia continues to grow, despite the global trend of declining tobacco use. Simultaneously, there is a growing incidence of non-communicable diseases (NCDs), with tobacco smoking considerably contributing to this trend. Furthermore, NCD patients' demography indicates a shifting pattern from older to younger people, corresponding with the rise in smoking prevalence among children. Prioritizing youth-centred prevention may prevail in addressing this issue. Hence, I attempt to evaluate a conditional cash transfer program for educational purposes focusing on childrenrelated outcomes in Indonesia. In this research, I apply a quasi-experimental method to examine the effects of educational cash transfer of Program Indonesia Pintar—Smart Indonesia Program (PIP) on 6-18 years old children’s schooling participation and smoking behavior. Using fuzzy Regression Discontinuity Design, I find evidence that the educational cash transfer PIP for vulnerable poor children helps increase household spending on a child’s education and averts children from drop-out risks. It also enhances the likelihood of a child’s predominant engagement in educational activities, even when they are also responsible for household chores. Additionally, my findings verify that schooling participation, induced by the PIP reception, reduces the child’s likelihood to smoke and cuts the number of cigarettes consumed. My empirical results suggest that the educational cash transfer program yields outcomes beyond its intended objectives. Not only does it promote schooling, but furthermore, schooling prevents hazardous health behavior, such as smoking, among children.