A new analysis from the Rockefeller Institute of Government estimated that a legal adult-use marijuana industry in New York state could generate up to $4 billion in economic activity and support up to 30,700 jobs annually. “As state lawmakers debate whether to legalize marijuana for recreational use and given the challenges with federal restrictions, it […]
A new analysis from the Rockefeller Institute of Government estimated that a legal adult-use marijuana industry in New York state could generate up to $4 billion in economic activity and support up to 30,700 jobs annually.
“As state lawmakers debate whether to legalize marijuana for recreational use and given the challenges with federal restrictions, it is critical to present an evidence-driven roadmap for developing and regulating the industry,” Jim Malatras, president of the Rockefeller Institute of Government, said in a news release.
The new analysis projects economic impacts based on a recent report by the New York State Department of Health that estimates the market size of adult-use marijuana in New York to be between $1.7 billion and $3.5 billion, as well as economic-development data from states that have already legalized the drug.
The findings include the following:
• Based on conservative market-size estimates, traditional multiplier analysis finds the recreational marijuana industry would generate at least $3.2 billion in economic output and support 23,747 jobs
• Using marijuana-specific multipliers, the potential economic impact would be more than $4 billion with 30,731 jobs supported
• New York should expect a temporary economic boost from the large-scale investments made shortly after legalization
The analysis also addresses the unknown effects of municipalities opting out of the industry — as of April 2019, Suffolk, Nassau, Rockland, Putnam, and Chemung counties were considering legislation to opt out and were considered likely to ban sales in the event of legalization — as well as the potential effects of legalization in workplaces that enforce drug-free policies. The Rockefeller Institute says an upcoming analysis will examine the fiscal impacts on the state through tax and licensing revenue.
Laura Schultz, director of fiscal analysis and senior economist at the Rockefeller Institute of Government, wrote the report. It is available at: https://rockinst.org/issue-area/the-economic-impact-of-developing-the-adult-use-cannabis-industry-in-new-york.
The Rockefeller Institute of Government is the public-policy research arm of the State University of New York.
