The Criminogenic Effect of Marijuana Dispensaries in Denver, Colorado: A Microsynthetic Control Quasi-Experiment and Cost-Benefit Analysis

Abstract

The study analyzed the criminogenic effect of legalizing recreational marijuana dispensaries in Denver. Street segments with recreational dispensaries experienced no changes in violent, disorder and drug crime but did experience an 18% increase in property crime, and street segments adjacent to recreational dispensaries experienced some notable (but non-significant) drug and disorder crime increases. Medical dispensaries demonstrated no significant crime changes. A cost-benefit analysis found the associated crime costs were largely offset by sales revenue. Monetary benefits were much less pronounced, and barely cost effective, when only considering tax revenue.