Put arguments for and against legalization aside for a moment. If people could use marijuana—without fear of legal consequence—just how much would get used? More to the point, how much money is at stake?
A variety of businesses and tax-deprived governments would love to know the answer. Unfortunately, there isn’t a simple one. By its taboo nature, marijuana consumption and demand is not well-measured.
Economists, reformists, law enforcement authorities and the pro-marijuana lobby, however, have come up with a variety of estimates. Put them all together and you get a range of $10 billion to over $120 billion a year. Such a wide spread is hardly a solid answer.
But some calculations may be better than others. All estimates begin with some key assumptions on the basic economic theory of supply and demand, thus laying the foundation for the size of the pot market.
Demand-Based Models: How Much Do People Consume?
Demand-based models use consumption volumes and price to estimate the size of a total market. Here, the tricky part is coming up with exact figures on how much pot is consumed and how much it costs. Opinions differ.Page 1 of 7 | Next Page