What do we know about opportunities and challenges for localities from Cannabis legalization?

Abstract

This review article assays the scholarly and popular press literature on the opportunities and challenges the growing legalized cannabis industry offers U.S. local governments and communities. Localities are an important focus because in many states with legalized cannabis, local jurisdictions have authority to prevent or condition its cultivation, sale, and use. Opportunities potentially flowing to localities from legalization include increased tax revenues and land values, business expansion, and increased employment; public health and safety benefits; and the potential for legalization to advance social and racial inclusion. Challenges include the possibility that economic benefits will be more limited than anticipated; complex regulatory environments facing local governments and cannabis businesses, possible increases in pollution, blight, and public health and safety concerns; and less advancement of social and racial equity than hoped by advocates. We offer recommendations for scholars investigating cannabis governance concerns and practitioners directly grappling with them.

Social Justice and Medical Equity through Federal Legalization of Marijuana

“…The cannabis industry stands to gain many benefits through legislation consistent with the MORE Act, however, with benefits come greater responsibilities to the public, which will likely affect profit. 68,69 The court case of 'James versus The United States' (366 U.S. 213, 218; 1961), set a precedent that any income is considered taxable income, whether it be from a legal or illegal source. 70 This ruling clarifies that cannabis businesses are responsible for local, state, and federal taxes.…”

“…However, the availability of government resources to cannabis businesses and employees and the added safety benefit of cashless money transfers would likely offset this burden eventually. 69,78 Legalization of cannabis would likely also have the effect of creating more competition in the market. As the industry becomes less stigmatized through federal endorsement, it will grow, mature, and eventually become saturated.…”

The threat of wildfire is unique to cannabis among agricultural sectors in California

“…Cannabis agriculture also plays a critical role in supporting adjacent industries, including equipment suppliers, construction companies, and service providers (Kelly & Formosa, 2020). A thriving cannabis industry has been demonstrated to bolster rural communities due to increased government revenue, business expansion, job growth, and higher property values (Kavousi et al, 2022). From a statewide perspective, losses of cannabis to wildfire represent a potentially significant economic impact as well.…”

Localities and infrastructures in science, technology, and environmental policy making

“…A policy area that is-similar to wind energy regulation-subject to local authority is that of cannabis governance. Kavousi et al (2021) review the challenges and opportunities put forward in scholarly and media publications and make informed conclusions for researchers and practitioners around cannabis policy.At the intersection of local governance and infrastructure provided by public and private entities, Scott et al ( 2022) analyze how the ownership type of gas distributors affects infrastructure quality and methane emissions, and whether this environmental policy performance varies by regional provider concentration. They argue that publicly owned providers underperform, mainly because of barriers to raising prices and funding capital investment.…”

“…A policy area that is-similar to wind energy regulation-subject to local authority is that of cannabis governance. Kavousi et al (2021) review the challenges and opportunities put forward in scholarly and media publications and make informed conclusions for researchers and practitioners around cannabis policy.…”