Monday, January 27, 2020

Marijuana legalization increases cigarette consumption

Econ Paper:  
... marijuana and cigarettes are complements and legalizing recreational marijuana is associated with an increase in cigarette consumption by about 4-7%.

So, beware the hidden-cost fallacy:  
We advise caution in passing [marijuana legalization] laws since we estimate the nationwide health care costs associated with such an increase in tobacco consumption will be about $10 billion and may equal or exceed the touted monetary benefits of marijuana legalization in many states.

HT:  MarginalRevolution.com

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