What do we know about opportunities and challenges for localities from Cannabis legalization?

Abstract

This review article assays the scholarly and popular press literature on the opportunities and challenges the growing legalized cannabis industry offers U.S. local governments and communities. Localities are an important focus because in many states with legalized cannabis, local jurisdictions have authority to prevent or condition its cultivation, sale, and use. Opportunities potentially flowing to localities from legalization include increased tax revenues and land values, business expansion, and increased employment; public health and safety benefits; and the potential for legalization to advance social and racial inclusion. Challenges include the possibility that economic benefits will be more limited than anticipated; complex regulatory environments facing local governments and cannabis businesses, possible increases in pollution, blight, and public health and safety concerns; and less advancement of social and racial equity than hoped by advocates. We offer recommendations for scholars investigating cannabis governance concerns and practitioners directly grappling with them.