Marijuana Regulation: Impact on Health, Safety, Economy
The enactment of adult use cannabis regulation is not associated with significant upticks in marijuana use by adolescents
“Canada legalized recreational cannabis use for adults on October 17, 2018 with decision-makers emphasising the need to reduce cannabis use among youth. We sought to characterize trends of youth cannabis use before and after cannabis legalization by relying on a quasi-experimental design evaluating cannabis use among high school students in Alberta, British Columbia, Ontario, and Québec who participated in the COMPASS prospective cohort study. Overall trends in use were examined using a large repeat cross-sectional sample (n=102,685) at two time points before legalization (16/17 and 17/18 school years) and one after (18/19 school year). … In the longitudinal sample, no significant differences in trends of cannabis use over time were found between cohorts for any of the three use frequency metrics. Therefore, it appears that cannabis legalization has not yet been followed by pronounced changes on youth cannabis use.”
“Youth Risk Behavior Survey data from 47 states from 1999 to 2017 assessed marijuana, alcohol, cigarette, and e-cigarette use among adolescents (14-18+ years; N = 1,077,938). Associations between RML (recreational marijuana legalization) and adolescent past-month substance use were analyzed using quasi-experimental difference-in-differences zero-inflated negative binomial models. … Controlling for other state substance policies, year and state fixed effects, and adolescent demographic characteristics, models found that RML was not associated with a significant shift in the likelihood of marijuana use. … Results suggest minimal short-term effects of RML on adolescent substance use, with small declines in marijuana use.”
“This report provides key insights into substance use behaviors of U.S. high school students during 2009–2019. Encouraging findings include decreasing prevalence of current alcohol use and decreases in the prevalence of lifetime use of marijuana. … Lifetime marijuana use increased during 2009–2013 and then decreased during 2013–2019. … The findings in this report indicate that youth substance use has declined in recent years.”
“Taken as a whole, these studies suggest that marijuana legalization has not had much overall effect on marijuana use by children and adolescents, at least during the past two decades. From 2000 to 2019, marijuana legalization changed substantially, and now medical marijuana is legal in 33 states and recreational marijuana use in 11. Despite these changes, adolescent marijuana prevalence has varied little, with the national percentage of US 12th graders who have ever used marijuana hovering within a narrow window of 42% to 49% during this time period.1 In 2019, it was at 44%, toward the lower end of this range. … In summary, prevalence of marijuana use among adolescents has remained remarkably steady over the past 20 years despite substantial changes in its legality across the United States during this period.”
“Rates of marijuana use by teens have been of great interest to researchers over the past decade, given major social and legislative shifts around the drug. … Fortunately, even as teens’ attitudes toward marijuana’s harms continue to relax, they are not showing corresponding increases in marijuana use.”
There has been “no significant change in past 30‐day use of marijuana between 2013 (19.7%) and 2017 (19.4%). Also, in 2017, the use rates were not different from the national 30‐day use rates reported by the Youth Risk Behavior Survey. In 2017, 19.4% of Colorado high school students reported using marijuana in the past 30‐days compared to 19.8% of high school students nationally that reported this behavior.”
“[W]e did not find a significant effect for perceived wrongfulness, perceived ease of access, or perceived parental disapproval. We did not find significant variability in past 30-day use by demographic characteristics or by school and community factors from 2013 to 2015. We did not find a significant effect associated with the introduction of legal sales of recreational marijuana to adults in Colorado on adolescent (illegal) use.”
“With legalization of retail marijuana in Colorado, and the opening of dispensaries in January 2014, two key questions were how legalization would impact marijuana use and whether there would be an increase in adverse health events. Legalization did not noticeably impact marijuana use rates among adolescents or young adults. Past-30-day use among adolescents remained steady for more than ten years, pre- and post-legalization.”
“According to the 2017 data [provided by the U.S. Centers for Disease Control and Prevention’s High School Youth Risk Behavior Survey,] the most recent available, 19.6 percent of Colorado high school students currently use marijuana — a couple of ticks below the national average of 19.8 percent. Moreover, the latest Colorado numbers are well below the 21.2 percent registered in 2015, the year after recreational sales went into effect, and 22 percent circa the pre-legalization year of 2011. As for lifetime use of marijuana among Colorado high-schoolers, it fell to 35.5 percent, a little under the 35.6 percent national average. The Colorado figures from 2015 and 2011 were 38 percent and 39.5 percent, respectively.”
“Certainly the worst things that we had great fear about (the legalization of marijuana for adults in Colorado) – spikes in consumption, kids, people driving while high – we haven’t seen any of that. We saw a little increase in teenagers and that came down within a couple years. … We were very worried that by legalizing, we were making this more somehow more psychologically available to kids. We haven’t seen that. If anything, we’ve seen less drug dealers.”
“I think the concern was that by legalizing marijuana, we should certainly see an increase in adult use, and maybe that would leak into our youth. [There was also a concern that] youth would somehow gain greater access, and/or feel entitled to go ahead and use in greater numbers. We just haven’t seen that pan out. … It appears that teenagers make decisions to consume marijuana for reasons other than legalization—like they do with other risk behaviors.”
“[T]he presence of recreational marijuana retail stores was not associated with perceived easy access to marijuana, controlling for perceived ease of access before the retail sales. There was no significant change in past 30-day marijuana use in bivariate analysis or in a multivariate model including presence of a recreational marijuana store.”
“For adults and adolescents [in Colorado], past-month marijuana use has not changed since legalization either in terms of the number of people using or the frequency of use among users. Based on the most comprehensive data available, past month marijuana use among Colorado adolescents is nearly identical to the national average.”
[M]arijuana use, both among adults and among youth [in Colorado], does not appear to be increasing to date. No change was observed in past 30-day marijuana use among adults between 2014 (13.6 percent) and 2015 (13.4 percent). Similarly, there was no statistically significant change in 30-day or lifetime marijuana use among high school students between 2013 (lifetime: 36.9 percent, 30-day: 19.7 percent) and 2015 (lifetime: 38.0 percent, 30-day: 21.2 percent).”
“We can state with some confidence that, even in states that have enacted marijuana liberalization policies, marijuana use among adolescents is not currently increasing. In fact, there is rather compelling evidence that adolescent marijuana use has steadily declined.”
“Despite concerns that legalization of marijuana for recreational use by adults in 2012 may also increase teens’ ability to access to marijuana [in Washington], preliminary analyses of state-wide HYS (Healthy Youth Survey) data suggest otherwise.”
The establishment of cannabis retailers is not associated with upticks in criminal activity
“This paper studies the effects of marijuana legalization on neighborhood crime and documents the patterns in retail dispensary locations over time using detailed micro-level data from Denver, Colorado. … The results imply that an additional dispensary in a neighborhood leads to a reduction of 17 crimes per month per 10,000 residents, which corresponds to roughly a 19 percent decline relative to the average crime rate over the sample period. … Overall, our results suggest that dispensaries cause an overall reduction in crime in neighborhoods, with no evidence of spillovers to surrounding neighborhoods. … Our results are consistent with theories that predict that marijuana legalization will displace illicit criminal organizations and decrease crime through changes in security behaviors or substitution toward more harmful substances. … Lastly, there is no evidence that increased marijuana use itself results in additional crime.”
“Using 2010 to 2015 Uniform Crime Reports data, the research undertakes interrupted time-series analysis on the offenses known to be cleared by arrest to create monthly counts of violent and property crime clearance rate as well as disaggregated counts by crime type. Findings suggest no negative effects of legalization on crime clearance rates. Moreover, evidence suggests some crime clearance rates have improved. Our findings suggest legalization has resulted in improvements in some clearance rates.”
“[W]e find no support for the idea that closing dispensaries reduces crime. Rather, temporary closures deter some types of Part I (serious) crime. … “An open dispensary provides over $30,000 per year in social benefit in terms of larcenies prevented.”
“There were no observed cross-sectional associations between the density of medical marijuana dispensaries and either violent or property crime rates in this study. These results suggest that the density of medical marijuana dispensaries may not be associated with crime rates or that other factors, such as measures dispensaries take to reduce crime (i.e., doormen, video cameras), may increase guardianship such that it deters possible motivated offenders.”
Medical cannabis access laws are not associated with adverse effects on traffic safety
“While attention has been given to how legalization of recreational cannabis affects traffic crash rates, there was been limited research on how cannabis affects pedestrians involved in traffic crashes. This study examined the association between cannabis legalization (medical, recreational use, and recreational sales) and fatal motor vehicle crash rates (both pedestrian-involved and total fatal crashes). … We found no significant differences in pedestrian-involved fatal motor vehicle crashes between legalized cannabis states and control states following medical or recreational cannabis legalization. Washington and Oregon saw immediate decreases in all fatal crashes (-4.15 and -6.60) following medical cannabis legalization. … Overall findings do not suggest an elevated risk of total or pedestrian-involved fatal motor vehicle crashes.”
“This paper reports a quasi-experimental evaluation of California’s 1996 medical marijuana law (MML), known as Proposition 215, on statewide motor vehicle fatalities between 1996 and 2015. … We found that legalizing medical marijuana in California led to a sustained reduction in statewide motor vehicle fatalities. … California’s 1996 MML appears to have produced a large, sustained decrease in statewide motor vehicle fatalities amounting to an annual reduction between 588 and 900 vehicle fatalities.”
“[O]n average, medical marijuana law states had lower traffic fatality rates than non-MML states. …. Medical marijuana laws are associated with reductions in traffic fatalities, particularly pronounced among those aged 25 to 44 years. … It is possible that this is related to lower alcohol-impaired driving behavior in MML-states.”
“State-specific estimates indicated a reduction in opioid positivity for most states after implementation of an operational MML. … Operational MMLs are associated with reductions in opioid positivity among 21- to 40-year-old fatally injured drivers and may reduce opioid use and overdose.”
Adult-use marijuana laws have generally been associated with few changes in traffic safety, though more recent studies have yielded less consistent findings
“A retrospective analysis of data collected at trauma centers in Arizona, California, Ohio, Oregon, New Jersey, and Texas between 2006 and 2018 was performed. … The data were analyzed to evaluate the trends in THC and alcohol use in victims of MVC [a motor vehicle crash], related to marijuana legalization. … There did not appear to be a relationship between the legalization of marijuana and the likelihood of finding THC in patients admitted after MVC. … There was no apparent increase in the incidence of driving under the influence of marijuana after legalization.”
“[The] implementation of recreational cannabis laws was associated with increases in traffic fatalities in Colorado but not in Washington state. … Findings suggest that adverse unintended effects of recreational cannabis laws can be heterogeneous and may depend on variations in implementation of these laws (e.g., density of recreational cannabis stores).”
“In the five years after legalization, fatal crash rates increased more in Colorado and Washington than would be expected had they continued to parallel crash rates in the control states (+1.2 crashes/billion vehicle miles traveled, but not significantly so. The effect was more pronounced and statistically significant after the opening of commercial dispensaries. … [This finding]… stands in contrast to earlier studies finding decreases in traffic fatalities following medical marijuana legalization. … [T]hese unexpected findings raise the possibility that legalization of medical and recreational marijuana represent two distinct policy exposures rather than ‘escalating doses’ of the same exposure and pose very different risks. This is an area in need of further study.”
“We find that states that legalized marijuana have not experienced significantly different rates of marijuana- or alcohol-related traffic fatalities relative to their synthetic controls. … In summary, the similar trajectory of traffic fatalities in Washington and Colorado relative to their synthetic control counterparts yield little evidence that the total rate of traffic fatalities has increased significantly as a consequence of recreational marijuana legalization.”
“Traffic deaths in Nevada dropped over 10 percent in the first year of recreational marijuana, according to data provided by the Nevada Department of Public Safety.”
“We (the state of Colorado) have not experienced any significant issue as a result of legalization. … We have actually seen an overall decrease in DUI’s since legalization. So, the short answer is: There has been no increase since the legalization of marijuana here.”
“We found no significant association between recreational marijuana legalization in Washington and Colorado and subsequent changes in motor vehicle crash fatality rates in the first three years after recreational marijuana legalization. … [W]e also found no association between recreational marijuana legalization and total crash rates when analyzing available state-reported nonfatal crash statistics. … Post–recreational marijuana legalization changes in motor vehicle crash fatality rates for Washington and Colorado also did not significantly differ from those for the control states.”
“In monitoring the impacts of recreational marijuana legalization in Washington State, government researchers report that there was no trend identified in the percentage of drivers testing positive for marijuana (either marijuana only or marijuana in combination with other drugs/alcohol) for those involved in traffic fatalities and who were tested for drugs or alcohol.
Marijuana regulation is not associated with adverse effects on workplace performance or safety
“We evaluate the effect of RMLs [recreational marijuana laws] on WC [workers’ compensation] benefit receipt and WC income over the period 2010 to 2018 using the Annual Social and Economic Supplement (ASEC) of the Current Population Survey (CPS). … Our results show a decline in WC benefit propensity of 0.18 percentage points (‘ppts’), which corresponds to a 20.0% reduction in any WC income, after states legalize marijuana for recreational use. Similarly, we find that annual income received from WC declines by $21.98 (or 20.5%) post-RML. These results are not driven by pre-existing trends. … The present study provides empirical evidence on the consequences of marijuana legalization on issues related to the labor market outcomes, in particular, WC claiming of older adults. … Our findings suggest potentially important benefits to older workers and society at large. Broadly, we show non-trivial improvements in work capacity, which we proxy with WC benefit receipt and various other metrics in our mechanism analysis, among older adults.”
“[T]he current body of evidence does not provide sufficient evidence to support the position that cannabis users are at increased risk of occupational injury.”
“We study the effect of state medical marijuana laws (MMLs) on workers’ compensation (WC) claiming among adults. … We use data on claiming drawn from the Annual Social and Economic supplement to the Current Population Survey over the period 1989 to 2012, coupled with a differences‐in‐differences design to provide the first evidence on this relationship. Our estimates show that, post MML, WC claiming declines, both the propensity to claim and the level of income from WC. These findings suggest that medical marijuana can allow workers to better manage symptoms associated with workplace injuries and illnesses and, in turn, reduce need for WC.”
Reducing criminal penalties for marijuana offenses is associated with increased probability of employment, particularly for young males, and an average increase of 4.5 percent in weekly earnings. “This data provides suggestive evidence that marijuana decriminalization laws improve extrinsic labor market outcomes. … This result is consistent with existing literature that suggests black adults, especially men, stand to benefit the most from removing these penalties.”
Among those over the age of 50, the enactment of medical cannabis laws was associated with a “9.4 percent increase in the probability of employment and a 4.6 percent to 4.9 percent increase in hours worked per week. … Medical marijuana law implementation leads to increases in labor supply among older adult men and women.”
Marijuana regulation is associated with declining alcohol consumption
“We use data on purchases of alcoholic beverages in grocery, convenience, drug, or mass distribution stores in US counties for 2006-2015 to study the link between medical marijuana laws and alcohol consumption and focus on settling the debate between the substitutability or complementarity between marijuana and alcohol. … We find that the legalization of medical marijuana reduces alcohol consumption. We find consistent evidence across different specifications and alcohol products (i.e. alcohol in general, beer and wine). States legalizing medical marijuana use experience significant decrease in the aggregate sales of alcohol, beer and wine. Moreover, the effects are not short lived, with significant reductions observed up to 24 months after the passage of the law.”
“Research firm Cowen & Company analyzed the state of the beer industry in Colorado, Oregon and Washington–states where both recreational weed is legal and craft beer has become popular. In those states, beer markets have “collectively underperformed” over the last two years, trailing behind beer sales around the country.”
Marijuana regulation is associated with increased tax revenue and job creation
“Powered by an expanding legal market and a pandemic-driven boost in cannabis use, excise and sales taxes on cannabis jumped by more than $1 billion in 2020, or 58 percent, compared to a year earlier. In total, these taxes raised more than $3 billion last year.”
“The state has now surpassed $10 billion in total marijuana sales since legalizing the drug in 2014. In return, the state has collected over $1.6 billion in marijuana taxes and fee revenues since then.”
“In the United States there are more legal cannabis workers than electrical engineers. There are more legal cannabis workers than EMTs and paramedics. There are more than twice as many legal cannabis workers as dentists.”
“The number of people working in the U.S. cannabis industry is expected to jump to 240,000-295,000 by the end of 2020, slightly higher than the number of computer programmers employed in the United States.”
“One unanticipated effect of the COVID-19 pandemic has been the growth acceleration of legal cannabis markets (and erosion of illicit markets) in those states which have activated both medical and adult-use sales. … Through higher sales and increased patient participation in medical-only markets, the second quarter of 2020 saw surging patient counts in medical markets – particularly in those having 1) lower barriers to entry (i.e., less restrictive qualification requirements), and 2) more accessible markets (i.e., greater density among dispensaries). … Oregon saw record-setting sales in March, April, and May (the latter seeing the state generate $100 million in cannabis sales for the single-highest monthly total since the program’s launch). For its part, Colorado (with the country’s most mature adult-use market) saw record sales in May, which neared $200 million for the first time in its program’s history. … Analyzing retail data from 24 legal cannabis markets, New Frontier Data found that average consumer monthly spending rose to record highs in April and May, reaching $290 and $296, respectively.”
“There are now nearly a quarter of a million Americans whose professional lives are categorized as [either] illegal or nonexistent by the government of the United States. … If cannabis industry jobs were tallied like other jobs, … legal cannabis would be acknowledged as the fastest growing industry in America.”
“Cannabis workers earn a good wage too — about 11 percent more than the U.S. median salary of $52,863. … The median paycheck in the industry is $58,511 a year, or $5,648 more than the national figure.”
“[L]istings for cannabis-related positions have rocketed to the top echelon of the fastest-growing-job categories on sites like Indeed and ZipRecruiter. Julia Pollak, a labor economist at ZipRecruiter, said the company’s data put the number of cannabis jobs nationwide at 200,000 to 300,000.”
“States that legalize recreational cannabis see an immediate bump in home values following legalization, even without retail dispensaries opening up. From 2017 to 2019, cities where recreational marijuana is legal saw home values increase $6,337 more than cities where marijuana is illegal” after controlling for potential confounders.
“There are now more than 211,000 cannabis jobs across the United States. More than 64,000 of those jobs were added in 2018. … The cannabis workforce increased 21% in 2017. It gained another 44% in 2018. We expect at least another 20% growth in jobs in 2019. That would represent a 110% growth in cannabis jobs in just three years.”
State and local excise tax collections on retail adult-use cannabis sales surpassed $1 billion in 2018 — a 57 percent increase over 2017 levels, according to data compiled by the Institute on Taxation and Economic Policy.
“[A]ctual tax collections [in Oregon] have exceeded expectations. … [T]ax collections have come in 7% higher than expected so far in the 2017-19 biennium.”
“We evaluate the effect of medical and recreational dispensary openings on housing prices in Denver, Colorado. Using an event study approach, we find that the introduction of a new dispensary within a half-mile radius of a new home increases home prices by approximately 7.7 percent on average. The effect diminishes for homes further from new dispensaries but is consistent over time. Our results provide important and timely empirical evidence on the socioeconomic impacts of marijuana legalization.”
“In the first full fiscal year under legalization, running from July 2016 through June 2017, Oregon collected $70.2 million in state cannabis taxes. Collections rose to $82.2 million in the fiscal year that ended this June 30. That put tax revenue ahead of pace to meet the … state economic analysts forecast.”
“Here’s a striking figure for the nascent cannabis industry that only recently began to operate legitimately: It supports 125,000-160,000 full-time jobs in the U.S. To put that in perspective, the marijuana industry now supports approximately the same numbers of full-time workers as there are librarians and kindergarten teachers in the country – and roughly three times the number of employees in the U.S. coal industry. Over the next five years, the number of full-time marijuana workers is expected to more than double as large markets including California ramp up and new states come online.”
“According to ZipRecruiter data, the total number of industry job posts increased by 445% in 2017. … Our data also shows that the cannabis industry is growing more rapidly than some of today’s fastest-growing fields. Year over year growth of job posts in the cannabis industry is outpacing both tech (254% growth) and healthcare (70% growth). … Not only does the legalization of cannabis create a safer and more stable market for medical and recreational users, but it also significantly drives job growth.”
“As the first state to open recreational marijuana retail stores, Colorado provides a case study to examine the potential economic effects from legalization. Direct employment in the marijuana sector has risen robustly since the passage of Amendment 64, contributing about 5.4 percent of all employment growth in Colorado since January 2014. … Similar to employment, tax collections from marijuana have also increased sharply in recent years, and are equal to about 2 percent of general fund revenues in the state.”
“A half-year of legal cannabis is in Nevada’s books and recreational sales exceeded an average of $1 million per day through the first six months. … the industry generated $30,376,795 in tax revenue for the state through the first six months. So far the state has reported $10.8 million through the wholesale tax and $19.5 million through retail tax.”
“Cannabis sales in Washington state continue to grow at a steady rate, with total 2017 sales topping $1.1 billion at the end of September. … According to data released by the Washington State Liquor and Cannabis Board, over the past five months the state’s cannabis industry has broken a number of its own sales records, with monthly sales now exceeding $130 million.”
“Nevada’s recreational marijuana industry hit a new high, selling more than $37.9 million in October (2017). The state has earned nearly $20 million in marijuana tax revenue since the adult-use market launched in July.”
“Nevada dispensaries sold more than $33 million in recreational marijuana and the state pulled in nearly $5 million in total taxes in August (2017), according to numbers released by the Nevada Department of Taxation. … The recreational sales numbers were significantly ahead of the state’s projected $21.5 million in sales for August. In fact, the state did not project any month in the first year of recreational sales to eclipse $28 million.”
“In this paper we contribute to the debate on the impacts of recreational marijuana legalization on local communities by examining the effects of retail marijuana stores on nearby house prices in Denver, Colorado. … Using a difference-in-differences model, we compare houses that are in close proximity to a retail conversion to those that are slightly farther away from a retail conversion before and after the legalization of recreational sales. We find that after the law went into effect at the end of 2013, single family residences close to a retail conversion (within 0.1 miles) increased in value by approximately 8.4% relative to houses that are located slightly farther from a conversion (between 0.1 miles and 0.25 miles) in 2014 compared to the previous year.”
“Does legalizing retail marijuana generate more benefits than costs? This paper addresses this question by measuring the benefits and costs that are capitalized into housing values. We exploit the time-series and cross-sectional variations in the adoption of Colorado’s municipality retail marijuana laws (RMLs) and examine the effect on housing values with a difference-in-differences strategy. Our estimates show that the legalization leads to an average 6 percent increase in housing values, indicating that the capitalized benefits outweigh the costs. … In conclusion, this paper provides convincing causal evidence that legalizing retail marijuana generates net benefits, as measured through the housing market.”
