Originally published at blog.NORML.org

Sales of alcoholic beverages decline following the enactment of medical marijuana access laws, according to a working paper authored by a team of researchers from the University of Connecticut and Georgia State University.

Authors evaluated the relationship between medical marijuana laws and retail alcohol sales for more than 2,000 US counties for the years 2006 to 2015. Alcohol sales trends in medical cannabis states were compared to sales trends in states where cannabis remained illegal. Researchers determined that counties located in medical cannabis states, on average, experienced a reduction in monthly alcohol sales of 15 percent.

Researchers concluded: “We find that marijuana and alcohol are strong substitutes. … States legalizing medical marijuana use experience significant decreases in the aggregate sale of alcohol, beer and wine. Moreover, the effects are not short-lived, with significant reductions observed up to 24 months after the passage of the law.”

Consumer trend data from California reports that those with legal access to cannabis frequently reduce their alcohol intake. A 2016 analysis of beer sales in Colorado, Oregon, and Washington reported that retail sales “collectively underperformed” in the years following the enactment of adult use marijuana regulation.

Full text of the study, “Helping settle the marijuana and alcohol debate: Evidence from scanner data,” appears online here as both a downloadable paper and readable PDF.

Helping Settle the Marijuana and Alcohol Debate: Evidence from Scanner Data

30 Pages Posted: 2 Nov 2017  

Michele Baggio University of Connecticut

Alberto Chong Andrew Young School of Policy Studies, Department of Economics

Sungoh Kwon University of Connecticut

Date Written: November 1, 2017

Abstract

We use data on purchases of alcoholic beverages in grocery, convenience, drug or mass distribution stores in US counties for 2006-2015 to study the link between medical marijuana laws and alcohol consumption and focus on settling the debate between the substitutability or complementarity between marijuana and alcohol. To do this we exploit the differences in the timing of the of marijuana laws among states and find that these two substances are substitutes. Counties located in MML states reduced monthly alcohol sales by 15 percent. Our findings are robust to border counties analysis, a placebo effective dates for MMLs in the treated states and falsification tests using sales of pens and pencils.

Suggested Citation:

Baggio, Michele and Chong, Alberto and Kwon, Sungoh, Helping Settle the Marijuana and Alcohol Debate: Evidence from Scanner Data (November 1, 2017). Available at SSRN: https://ssrn.com/abstract=3063288