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Legalising drugs prudently: the importance of incentives and values

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  • Caulkins, Jonathan

Abstract

Various jurisdictions are legalising not just cannabis possession and use, but also large-scale commercial production, distribution and sale. Potential problems with that form of legalization raise questions about how best to implement a legalisation. This paper analyses the interests of the suppliers and regulators to help lawmakers and voters decide what over-arching architecture for legalisation might be prudent. In particular, it suggests banning for-profit companies and/or vesting regulatory authority in an agency that views its mission as protecting heavy users from suppliers’ excesses, rather than serving the interests of the cannabis industry.

Suggested Citation

  • Caulkins, Jonathan, 2019. "Legalising drugs prudently: the importance of incentives and values," LSE Research Online Documents on Economics 102970, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:102970
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    File URL: http://eprints.lse.ac.uk/102970/
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    References listed on IDEAS

    as
    1. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    2. Pacula, R.L. & Kilmer, B. & Wagenaar, A.C. & Chaloupka, F.J. & Caulkins, J.P., 2014. "Developing public health regulations for marijuana: Lessons from alcohol and tobacco," American Journal of Public Health, American Public Health Association, vol. 104(6), pages 1021-1028.
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    More about this item

    Keywords

    cannabis; marijuana; drug policy; legalisation; deciminalisation; policy analysis;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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