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Spotlight On: The Economics of Cannabis

Last updated: 08/14/2015 | More Spotlight On content
The issue of marijuana legalization is being hotly debated around the world. While questions of ethics, health, and social order are all part of this debate, the economics of this "cash crop" surpasses them all in the attention that it attracts. The stakeholders are numerous, and while some stand to gain, some stand to lose. How will legalization affect financial institutions? Will consumers experience a decrease in prices? Will taxpayers benefit from lower spending on law enforcement? Will government win big from tax revenues? Will employers lose out over lost productivity? Will social services expenditures rise due to increasing drug abuse cases?

The following list comprises of reports and working papers issued or contracted by policy makers and lobbyists, as well as books and journal articles published by academic researchers. The research spans drug policy around the globe, from the U.S., to the EU, and Australia. The economic impacts of legislation already enacted are explored, and the potential economic impacts are projected where legislation has been proposed or is being debated.

  25 records in list

Aldrich, M. R. & Mikuriya, T. H. (1988) "Savings in California Marijuana Law Enforcement Costs Attributable to the Moscone Act of 1976—A Summary", Journal of Psychoactive Drugs, 8 pages. doi: 10.1080/02791072.1988.10524375. http://dx.doi.org/10.1080/027...

Austin, J. (2005) Rethinking the Consequences of Decriminalizing Marijuana, JFA Institute. http://www.jfa-associates.com...

Bates, S. W. (2004) The Economic Implications of Marijuana Legalization in Alaska, Alaskans for Rights & Revenues. http://www.prohibitioncosts.o... Abstract▼ 

Becker, G. S., Murphy, K. M. & Grossman, M. (2006) "The Market for Illegal Goods: The Case of Drugs", Journal of Political Economy, 23 pages. doi: 10.1086/498918. Abstract▼ 

Caulkins, J. P., Kilmer, B., MacCoun, R. J., Pacula, R. L. & Reuter, P. H. (2012) "Design Considerations for Legalizing Cannabis: Lessons Inspired by Analysis of California's Proposition 19", Addiction, 7 pages. doi: 10.1111/j.1360-0443.2011.03561.x. http://dx.doi.org/10.1111/j.1... Abstract▼ 

Clements, K. W. & Zhao, X. (2009) Economics and Marijuana: Consumption, Pricing and Legalisation, Cambridge University Press, 422 pages. https://books.google.co.il/bo... Abstract▼ 

Donohue, J. J., Ewing, B. & Pelopquin, D. (2011) "Rethinking America's Illegal Drug Policy" in Philip J. Cook, Jens Ludwig & Justin McCrary [eds.] Controlling Crime: Strategies and Tradeoffs, University of Chicago Press, 67 pages.   Chapter 5 http://www.nber.org/chapters/...

Egan, D. & Miron, J. A. (2006) "The Budgetary Implications of Marijuana Prohibition" in Mitchell Earleywine [ed.] Pot Politics: Marijuana and the Costs of Prohibition, Oxford University Press, 23 pages.   Chapter 2 https://books.google.co.il/bo...

Evans, D. G. (2013) "The Economic Impacts of Marijuana Legalization", Journal of Global Drug Policy and Practice. http://jpo.wrlc.org/bitstream... Abstract▼ 

Fields, C. B. (2013) Economic Impacts of Marijuana Decriminalization in Kentucky, School of Justice Studies. http://justicestudies.eku.edu...

Fine, D. (2012) Too High to Fail: Cannabis and the New Green Economic Revolution, Penguin Books, 384 pages. https://books.google.co.il/bo... Abstract▼ 

French, M. T., Roebuck, M. C., Dennis, M. L., Godley, S. H., Liddle, H. A. & Tims, F. M. (2003) "Outpatient Marijuana Treatment for Adolescents: Economic Evaluation of a Multisite Field Experiment", Evaluation Review, 39 pages. doi: 10.1177/0193841X03254349. Abstract▼ 

Gettman, J. (2005) Crimes of Indiscretion: Marijuana Arrests in the United States, National Organization for the Reform of Marijuana Laws. http://norml.org/pdf_files/NO...

Glauser, D. (2012) The Economic Effects of Legalizing Marijuana, Unpublished BSc dissertation, University of Utah, 36 pages [supervisor: D. Kiefer]. http://content.lib.utah.edu/c... Abstract▼ 

Godfrey, C. (2006) "Evidence-Based Illicit Drug Policy: The Potential Contribution of Economic Evaluation Techniques", De Economist, 18 pages. doi: 10.1007/s10645-006-9030-1. Abstract▼ 

Kilmer, B., Caulkins, J. P., Pacula, R. L. & Reuter, P. H. (2012) The U.S. Drug Policy Landscape: Insights and Opportunities for Improving the View, RAND Corporation, 66 pages. http://www.jstor.org/stable/1...

King, R. S. & Mauer, M. (2006) "The War on Marijuana: The Transformation of the War on Drugs in the 1990s", Harm Reduction Journal. doi: 10.1186/1477-7517-3-6. http://www.ncbi.nlm.nih.gov/p... Abstract▼ 

Mercille, J. (2011) "Violent Narco-Cartels or US Hegemony? The Political Economy of the ‘War on Drugs’ in Mexico", Third World Quarterly, 17 pages. doi: 10.1080/01436597.2011.619881. Abstract▼ 

Miron, J. A. (2010) The Budgetary Implications of Drug Prohibition, [Working Paper], Harvard University, Department of Economics, 43 pages. http://scholar.harvard.edu/fi... Abstract▼ 

Nolin, P. C. & Kenny, C. (2003) Cannabis: Report of the Senate Special Committee on Illegal Drugs, University of Toronto Press, 200 pages. http://www.jstor.org/stable/1...

Office of National Drug Control Policy (2004) The Economic Costs of Drug Abuse in the United States, 1992-2002, Office of National Drug Control Policy. https://www.ncjrs.gov/ondcppu...

Pacula, R. L. (2010) Examining the Impact of Marijuana Legalization on Marijuana Consumption: Insights from the Economics Literature, [Working Paper], RAND Corporation, 25 pages. http://www.rand.org/content/d... Abstract▼ 

Pacula, R. L., Kilmer, B., Grossman, M. & Chaloupka, F. J. (2007) Risks and Prices: The Role of User Sanctions in Marijuana Markets, [Working Paper], National Bureau of Economic Research, 36 pages. http://www.nber.org/papers/w1... Abstract▼ 

Rusche, S. & Sabet, K. A. (2015) "What Will Legal Marijuana Cost Employers?", Journal of Global Drug Policy and Practice. http://www.globaldrugpolicy.o... Abstract▼ 

van Ours, J. C. & Pudney, S. (2006) "On the Economics of Illicit Drugs", De Economist, 8 pages. doi: 10.1007/s10645-006-9026-x.


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