The Cross-Border Spillover Effects of Recreational Marijuana Legalization

Working Paper: NBER ID: w23426

Authors: Zhuang Hao; Benjamin Cowan

Abstract: We examine the spillover effects of recreational marijuana legalization (RML) in Colorado and Washington on neighboring states. We find that RML causes a sharp increase in marijuana possession arrests in border counties of neighboring states relative to non-border counties in these states. RML has no impact on juvenile marijuana possession arrests but is rather fully concentrated among adults. Using separate data on self-reported marijuana use, we show this is accompanied by an increase in use in neighboring states relative to non-neighboring states. We do not find conclusive evidence that marijuana sale/manufacture arrests, DUI arrests, or opium/cocaine possession arrests in border states are affected by RML.

Keywords: Recreational Marijuana; Legalization; Border Counties; Marijuana Arrests

JEL Codes: I12; I18; K14


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
RML in Colorado and Washington (R59)marijuana possession arrests in border counties of neighboring states (K37)
self-reported marijuana use in neighboring states (I12)marijuana possession arrests in border counties of neighboring states (K37)
RML in Colorado and Washington (R59)self-reported marijuana use in neighboring states (I12)

Back to index