College

Buchtel College of Arts and Sciences

Date of Last Revision

2023-05-04 20:46:05

Major

Economics

Honors Course

3250:497-004

Number of Credits

3

Degree Name

Bachelor of Arts

Date of Expected Graduation

Spring 2021

Abstract

This study aims to analyze the cost and benefits of legalizing recreational marijuana in Ohio by estimating the monetary value of major cost and benefit items caused by legal recreational marijuana being implementing in Ohio. Key areas that are used in the analysis to give an accurate picture of the costs and benefits of marijuana are the areas of: tax revenue, the labor market, the criminal justice system, public health and safety, and educational attainment. By focusing on changes experienced in other states that have legalized, a realistic estimation of what will happen in Ohio can be made.

Data shows that implementing legalized marijuana in Ohio will result in a positive social net benefit for the state. The estimated social net benefit that will be experienced by the state has a value of more than $444 million. The biggest benefits that the state will experience come from the tax revenue, jobs, and lower DUI arrest rates that will be created by legalization. The biggest cost to the state will come in the form of increased drug rehabilitation admittance and car insurance claims. The positive social net benefit derived from variables used in this analysis implies that it will be economically beneficial for Ohio to legalize recreational marijuana.

Research Sponsor

Ali Enami, Ph. D.

First Reader

Ali Enami, Ph. D.

Second Reader

Dinkar Kuchibhotla, Ph. D.

Honors Faculty Advisor

Ali Enami, Ph. D.

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