Question

• The utilization of marijuana for medical purposes in Ohio was approved in 2016 in House Bill (HB) 523. Although the program was set to begin September 8, 2018, numerous setbacks pushed back this commencement date, and medical marijuana finally became available for purchase in Ohio in January of 2019. Beyond the supposed medical benefits, many proponents of the bill argued medical marijuana could provide a boost to the state’s economy. What were some of the projections regarding the economic impact of HB 523? Given the data gathered so far, do economists still believe these impacts will come to fruition?

please add some sources/references

Answer 1

Economic impacts of HB 523 :-

1) Legalisation of marijuana have given a big push to state economies through increase in taxes and fees on recreational Marijuana.

2) Setting up of marijuana dispensaries and nurseries have helped to strengthen the industry infrastructure.

3) Development of cannabis exchange traded funds offering up-to 50% return per year .

4) Legalisation of marijuana for specific medical purposes helps in the regularisation of the whole sector by regulating the growing , selling and workplace norms of Marijuana.

5) Increase in the value of real estate properties where marijuana cultivators , manufacturers , dispensaries, and retailers can operate

Fruitation of HB 523 :-

1) Income and Jobs - RCG Economics and Marijuana policy group have estimated that this bill will create 41000 additional jobs and generate over $ 1.7 billion labour income by 2024.

2) Sales - According to Arcview Market Research , the sales in North America is projected to increase up-to $20.1 billion by $20.1 billion .

3) Tax revenue - A special Senate of Massachusetts estimated tax revenues from Marijuana sales in the range of $50-60 million.

4) Cost saving - A report by American Civil Liberties Union found out that federal marijuana enforceable cost which is $3.6 billion per year is likely to go down with more number of states legalising cannabis .

5) Real estate benefits - According to data from CBRE research , the average lease rates for marijuana cultivation facilities have increased by 2-3 times by the average warehouse lease rates in previous years .