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Center for Business and Policy Research
Eberhardt School of Business
Jeffrey Michael, PhD - Exec. Director
Thomas Pogue, PhD - Assoc. Dir.
Sacramento Office: 916.340.6084
Stockton Office: 209.946.2913

Cannabis Sector Analyses

In 2015, California's legislature passed a series of bills entitled the Medical Marijuana Regulation and Safety Act (MMRSA) which established the first statewide regulatory system for medical cannabis businesses. This was followed by the passage of Proposition 64, the Adult Use of Marijuana Act (AUMA), in November 2016 which legalized recreational use of cannabis at the state-level for persons aged 21 years and older. With the passage of these laws, local governments across the state are developing local regulations for this emerging industry.

The Center for Business and Policy Research (CBPR) has been analyzing the economics of the cannabis sector in California. Through research on industry data from early legalization states and detailed interviews with cannabis industry farmers, investors, and accountants in Northern California, we have developed an economic model of ten industry sectors and incorporated these custom sectors into IMPLAN, the most widely used economic impact model. We are also developing fiscal impact assessments to examine the impacts of tax and regulatory scenarios on local governments. To date, CBPR has released two reports on the cannabis economy. These economic studies are helpful to communities trying to understand the scale and economic potential of the cannabis sector.  However, they do not examine possible social impacts of cannabis, including possible effects on health care, mental health, and crime. Links to the reports are found below.

Link to Report The Center for Business and Policy Research conducted an economic impact assessment of the cannabis cultivation industry Calaveras County which was released in February 2017. That study, commissioned by Ebbetts Pass Lumber Company, evaluated the economic impacts from cannabis cultivation in Calaveras County in 2016. It showed that cannabis cultivation was likely the largest industry in the County in 2016.
Link to Report In October 2016, CBPR released an economic impact study of a legal cannabis sector in the Sacramento area. That study, commissioned by Truth Enterprises, evaluated the future economic impacts of a legalized cannabis sector across seven counties in the Sacramento area. It showed a large range of differences in the economic impacts among different scenarios, illustrating distinct opportunities for the Sacramento area economy.

CBPR model of a regional cannabis economy

CBPR model of a regional cannabis economy