Dynamics of Marijuana Demand: Enforcement Effects on Consumption (From Marijuana: Costs of Abuse, Costs of Control, P 91-105, 1989, Mark A R Kleiman -- See NCJ-119206)

• NCJ Number: 119209
• Author(s): M A R Kleiman
• Date Published: 1989
• Length: 15 pages
• Sale Source: Greenwood Publishing Group
• Publication Type: Legislation/Policy Analysis
• Language: English
• Country: United States of America

Annotation

This study examines how much increased marijuana enforcement could reduce marijuana consumption in each of three ways: by raising prices, by creating shortages, and by changing the mix of products available on the market.

Abstract

Regarding a price rise through enforcement, the study determines that if the price-elasticity of demand for marijuana were as great as a highly unlikely -0.4, then the 13 percent retail price increase (study's maximum estimate of the effect of doubling enforcement) would yield a consumption decrease of imported marijuana of 5 percent, a meager result for such a dramatic budget reallocation. Regarding the reduction of consumption by creating marijuana shortages, it is not likely that shortages would persist for any significant length of time, given that marijuana grows virtually anywhere and growing it requires no special skill. Should higher prices and shortages of marijuana occur through increased enforcement, this could push some users toward consumption of the more potent domestic marijuana. Shifts to alcohol and PCP use might also be encouraged. Drug dealing and theft might be encouraged among juvenile users with low disposable incomes. Overall, a marijuana enforcement decrease promises to be more cost-effective than an increase. 18 notes.