With the legalization of marijuana, the State of Colorado has experienced a decrease in marijuana related arrests by 84%, saving the state between $12 million and $40 million dollars in 2014. Marijuana related hospitalizations have increased substantially since its commercialization in 2009.
In addition, the estimated impact of legalization closely matches the traditional DID estimates: a 17 percent decrease in liquor demand and an 8 percent decrease in cigarette demand (among other decreases in beer, wine, and OPT demand), implying that 43 percent of cannabis tax revenue was cannabalized from these other ...
The coefficient of the price variable indicates that the demand for marijuana is inelastic and equal to -0.689. This estimate is very much in line with the most recent estimates of van Ours and Williams (2007) and Clements et al.
According to the Leafly 2021 Jobs Report, legal cannabis now supports over 321,000 full-time American jobs. This is an increase of 77,300 (32%) over 2020. In an economy recovering from mandatory business closures and unemployment, cannabis employment rates continue to rise.