Neighborhoods where state-licensed cannabis dispensaries are located experience decreases in crime and upticks in economic activity, according to the findings of two new studies.
The first study, published in the Journal of Criminal Justice, compared local crime trends in neighborhoods with and without adult-use marijuana retailers. Researchers report “consistently robust decreases in total Part 1 [serious] crime and total property crime” following dispensary openings. Consistent with other studies, researchers suggest that licensed cannabis operators reduce neighborhood crime rates by hiring doormen, installing alarm systems and video surveillance cameras, and taking other steps to deter would-be criminal offenders.
The second study, published on the website of the Social Science Research Network, determined that dispensary openings drive customer growth at nearby establishments. Specifically, “recreational dispensary openings increase the number of customers at nearby establishments by approximately 6.82 percent, transactions by 8.01 percent, and revenue by 7.47 percent.” Food and beverage businesses were most likely to experience economic upticks following dispensary openings.
Commenting on the studies’ findings, NORML’s Deputy Director Paul Armentano said, “These results are consistent with those of numerous other studies showing that licensed cannabis businesses displace unregulated markets, limit youth access, and provide important improvements to local economies and to public safety.”
Full text of the study, “Marijuana dispensaries and neighborhood crime: Evidence from a statewide natural experiment in Ohio,” appears in the Journal of Criminal Justice. Full text of the study, “Demand spillovers from recreational cannabis dispensary openings to nearby retail establishments,” is available from SSRN.
Additional information is available from the NORML Fact Sheet, ‘Societal Impacts of Cannabis Dispensaries/Retailers.’