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Legal Marijuana Access Disrupts The Illicit Market, Study Finds

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Another study has found that people really prefer to buy their marijuana from legal sources, even if it is somewhat more expensive than illicit alternatives.

A behavioral economics analysis published in the journal Addiction offers more evidence that legalizing and regulating cannabis sales can “disrupt and potentially reduce illegal purchases.”

The idea that people would ditch the illicit market when provided with a legal alternative has been a major talking point among legalization advocates. But curiously, research on the subject has been limited, with empirical data “virtually nonexistent,” the authors of the new paper said.

To help fill that knowledge gap, researchers recruited more than 700 adults over age 21 living in states where cannabis is fully legal to complete online surveys about their marijuana consumption. They wanted to learn to what extent, if any, pricing influenced where people sought out their cannabis.

Each respondent was prompted with a hypothetical scenario: how much marijuana would you buy if it cost X dollars per gram from a legal dispensary, compared to a fixed $10 per gram alternative “from a dealer.” The “X” fluctuated from $0 to $60 per gram, and respondents were also given the inverse situation.

“As predicted, legal cannabis was considered a superior commodity to illegal cannabis, as indicated by increased unconstrained demand for legal cannabis that was 29 percent higher than illegal cannabis and price elasticity that was 43 percent lower for legal cannabis (less elastic) compared to illegal cannabis,” the researchers wrote.

Via Addiction.

But there is a tipping point. While people are willing to spend more for legally obtained cannabis, that trend begins to fade when prices exceed $14 per gram. For example, when marijuana costs $10 per gram, 81 percent of respondents said they’d opt for a legal dispensary and 19 percent said they’d choose the illicit market.

When marijuana is priced at $20 per gram, however, 36 percent of respondents said they’d visit a dispensary and 64 percent said they’d call up a dealer.

“Thus, over-pricing legal cannabis could potentially backfire to the extent that the majority of purchases would effectively come from the contraband market,” the study found. “If a goal of legalization is reducing the contraband market as much as possible, competitive pricing is necessary.”

In order to “optimize the balance,” marijuana at legal dispensaries should be priced between $8 and $14 per gram.

The findings are consistent with those of a separate July study, which looked at purchasing behavior among Canadian cannabis consumers.

“[P]riced the same or slightly higher, the legal cannabis was preferred and suppressed illegal purchasing, but, by $20 [per] gram, that pattern was reversed,” that study determined.

Legalizing Marijuana Brings Illicit Consumers To The Legal Market, Study Says

Photo courtesy of WeedPornDaily.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Kyle Jaeger is Marijuana Moment's Los Angeles-based associate editor. His work has also appeared in High Times, VICE and attn.

Science & Health

Denver’s Teen Marijuana Education Campaign Seems To Be Working, Survey Finds

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A year after Denver launched a marijuana-focused educational campaign targeting local youth, a new survey released Tuesday reports that the majority of teens familiar with the city’s efforts said they decided against underage cannabis consumption.

The research, conducted by Insights Lab, was commissioned to measure the effectiveness of Denver’s High Costs campaign, which was launched in 2017 and is funded by the city’s tax revenue on retail cannabis. Among the myriad ways the city is working to get teens talking about marijuana and its associated risks for underage users are social media campaigns, billboards, school bus signage, an online game show called “Weeded Out” and a Weeded Out trivia card game.

More than 500 teens who live in the city and county of Denver participated in the survey, which was available online November 21 through December 18, 2018. Sixty-four percent said they were aware of the High Costs campaign, most having seen online ads on Facebook and YouTube. A majority recognized that the campaign’s intended message was to provide facts about underage marijuana use, though 53 percent also said the program “provides biased information” to discourage use.

Many teens also said they thought High Costs was trustworthy (75 percent) and likable (73 percent), while about half indicated the tone was “preachy or judgmental.”

Via The High Cost.

In terms of effectiveness, the survey found that 75 percent of the participants who were aware of High Costs said the campaign made them either not want to use, less likely to use or think twice about using marijuana.

Via The High Cost.

“Teens want facts and they want to be able to make their own decisions,” Denver Mayor Michael Hancock (D), who called the city’s legal cannabis system a “success” last year, said in a statement. “When we give teens the facts and equip them with knowledge, they make smarter choices about using marijuana.”

In order to build on the first year’s success, the survey report’s authors suggest the city continue growing its online presence and consider more nontraditional marketing methods, including giveaways.

The report also points out that 18 percent of teens said they currently use marijuana. According to the survey’s findings, they appeared skeptical of the campaign and less likely to share its information with friends.

“This audience is going to be difficult to reach, as they’ve already decided to use and naturally are going to reject information that contradicts their decision,” the report states. “For now, focus on the core audience of non-users and past-users, and evaluate the opportunity to target this segment again in a year.”

Last week, Denver officials released an interactive map that tracks how the city spends cannabis tax revenue on educational efforts.

Denver Launches Interactive Map To Track How Marijuana Tax Revenue Funds Education

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Politics

Feds Ramp Up Calls For Research Into Marijuana Treatment For Chronic Pain

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A federal health agency is seeking the public’s help in identifying studies that explore the potential benefits and harms of using marijuana instead of opioids for chronic pain treatment.

In three separate notices published in the Federal Register on Tuesday, the Agency for Healthcare Research and Quality (AHRQ) said it is in the process of reviewing existing research on chronic pain—specifically alternatives to opioid-based painkillers—and requested “supplemental evidence and data submissions” from the public.

The agency provided guidelines for what exactly it was interested in learning. One notice called for studies on the “comparative effectiveness” of using non-opioid therapies, “including marijuana,” instead of opioids. The studies should explore differences in “outcomes related to pain, function, and quality of life.” The filing also includes a prompt for evidence about utilizing cannabis in tandem with opioids, including how the harms of the prescription pain medications vary for patients who also use marijuana.

In another notice, AHRQ, which is part of the U.S. Department of Health and Human Services, said it wants help completing its review of non-invasive and non-pharmacologic chronic pain treatments such as exercise, mindfulness, acupuncture—and yes, medical marijuana. The request specified that the agency is interested in research on “any formulation” of cannabis.

Finally, a third notice included marijuana in a list of non-opioid pharmacologic treatment options that AHRQ is interested in exploring. The public is encouraged to submit studies and data on the risk of “overdose, misuse, dependence, withdrawals due to adverse events, and serious adverse events” for medical cannabis, as well as more conventional oral and topical treatments.

Altogether, the package of solicitations demonstrates that while marijuana remains a Schedule I drug (meaning the federal government does not recognize it as having medical value), there are federal agencies that are compelled by the prospect that cannabis effectively treats pain without the risks posed by opioids.

And there are any number of studies that AHRQ might want to take into consideration. For example, there are surveys that show patients often use marijuana as a substitute for opioid painkillers and other pharmaceuticals, as well as several comprehensive studies indicating that states with legal cannabis access experience lower opioid overdose rates and have fewer opioid prescriptions compared to non-legal states.

The deadline to submit studies and data for all of the new notices is April 18.

These are the latest in a series of notices that AHRQ and other federal agencies have published in recent months. Last year, the National Center for Complementary and Integrative Health hosted a workshop that specifically addressed barriers to cannabis research while the substance remains federally prohibited.

Anti-Legalization GOP Congressman Slams DEA Over Marijuana Research Blockade

Photo courtesy of Philip Steffan.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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Culture

Marijuana Tourism From China To Amsterdam: Study Sheds Light On Motivations

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Marijuana use in China is strictly forbidden. In fact, when Canada legalized cannabis last year, the Chinese government sternly reminded its citizens living in or visiting the country to “please avoid contact or using marijuana.”

Yet, despite their nation’s strict views on marijuana, research shows that significant numbers of Chinese tourists are heading to Amsterdam to take part in its prolific cannabis culture. A new study published in the journal Current Issues in Tourism sheds light on some of the motivations for the cross-continental cannatourism.

The punishment for drug use of any kind in China, including marijuana, is up to 15 days in detention and mandatory rehabilitation, the study’s authors write. But the Chinese government has been known to enforce harsher sentences for other cannabis-related charges. For example, Jaycee Chan, the son of actor Jackie Chan, spent six months in a Beijing jail after police discovered more than 100 grams in his apartment.

Because Chinese citizens are “widely educated to stay away from any kind of drugs,” the study states, researchers were curious to know more about who these tourists heading to the Netherlands for cannabis really were. Between February 2014 and October 2016, they randomly approached Chinese tourists in or exiting Amsterdam coffee shops where marijuana is sold over the counter and invited them to complete a confidential questionnaire. A total of 654 surveys were collected and analyzed.

About 80 percent of respondents said they’d never tried marijuana prior to their trip to Amsterdam.

Participants were divided into three segments based on their responses: cannabis enthusiasts, diversionists/recreationists (people who were seeking pleasure or a diversion from their daily lives) and people who were simply curious about cannabis culture.

Survey responses from the first and third groups “demonstrate that Chinese drug tourists desire to ‘experience all’ and seek authenticity out of their normal daily life and society during the overseas travel,” the study authors wrote.

The largest number of tourists surveyed (almost 44 percent) fell into the category of diversionist/recreationist. In other words, they used cannabis as a way to enjoy their vacation—not unlike tourists from other countries.

“They travelled and consumed cannabis mostly for the sake of experiencing/experimenting with the local cannabis culture in Amsterdam as well as relaxation, pleasure, and to escape from stressful social environments,” the authors write.

Cannabis enthusiasts were the smallest segment of the sample. In terms of demographics, almost half of the survey respondents were women. Overall, a majority of participants reported being college-educated, under 35 years old and not married.

In a recent interview, lead study author Jun Wen discussed why Chinese tourists are especially attracted to the Netherlands.

“You can do a lot of things there that are illegal in China – gambling, paying for sexual services, and buying cannabis for recreational use,” he said. “So Chinese tourists want to go there to find a different way to relax that’s not traditional.”

World Health Organization Recommends Reclassifying Marijuana Under International Treaties

Photo by Sharon McCutcheon on Unsplash.

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