The economic impacts of marijuana sales in the state of California

With the passage of Proposition 215 in 1996, California became the first state to permit the possession, cultivation, and consumption of marijuana for medical purposes. Recent surveys of likely California voters indicate majority support for the legalization of recreational marijuana. While there is still significant debate regarding the regulatory and legal foundations that will govern the recreational marijuana industry in the Golden State, an initiative is expected to appear on the 2016 ballot.

This analysis presents estimates of the potential economic benefits of legal medical and recreational marijuana sales in California.