Today Scioto Analysis released its most recent cost-benefit analysis looking at the impact of Ohio’s Ballot Issue Two, recreational marijuana legalization.
The study found that this policy “will likely generate about $260 million in net benefits for society, though likely results ranged between $200 million in net costs and $1.9 billion of net benefits.”
Researchers state that their “simulation model suggests that in 90% of likely scenarios, recreational marijuana legalization will have a positive net economic benefit on society.”
The largest reason for these benefits is the estimated $190 million of tax revenue that they expect to be collected from the sale of recreational marijuana. In the language of ballot initiative, this revenue would be earmarked in part for two highly beneficial programs: the Cannabis Social Equity and Jobs Fund and the Substance Abuse Addiction Fund. The report expects “both of these programs to generate over $800 million of social value by themselves.”
The largest potential social cost, the analysis states, is a potential loss in job productivity. The study mentions, however, that “this may correct itself in the long run”.
Policy analyst Michael Hartnett, says “The key reason benefits are likely to outweigh costs when it comes to marijuana legalization is how the tax dollars raised are going to be used. The programs outlined in the ballot initiative have historically been very efficient ways to use public dollars, and will likely generate a lot of value for Ohioans.”
The full report can be found by clicking here.