Social Scientist estimates size of Oregon’s hazy marijuana market

Social Scientist estimates size of Oregon’s hazy marijuana market

In his recently published study Oregon State University sociologist Seth Crawford estimates the size of Oregon’s informal marijuana economy. The results shed light on a well-established, robust and unexamined market just months before Oregonians will decide whether to legalize the recreational sale and regulation of marijuana in November. In this conversation with CRN’s Brian Bahouth, Crawford discusses his methods, results and conclusions.

A few notes from the study:

– The average marijuana user in Oregon consumes approximately 4.5 ounces per year and pays approximately $177 per ounce.

– Most users purchase the drug from friends and nearly one third of respondents indicate that they sell marijuana in small quantities.

– Growers tend to sell inauspicious quantities to friends and relatives, and rarely earn more than $10,000 annually from their sales.

– The composition of distribution networks suggests that the informal marijuana economy is a “robust network,” particularly in states that allow personal medical  production. This finding also suggests that legalization will likely produce a net increase in economic inequality, particularly affecting parts of Oregon associated  with the State of Jefferson, by shutting out smaller producers.

– Several taxation schemes are presented to offer estimates of revenue if the drug were legalized; these findings suggest that marijuana could contribute modestly to the  state’s total revenue, but the most economically beneficial aspect of legalization could be from criminal justice savings.