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Cannabis Legalization Associated With 9% Increase In College Enrollments

A researcher associated with the Department of Economics at the University of Oklahoma recently examined college enrollment rates and state-level recreational cannabis laws. The results of the study were published in Economic Inquiry.

“This paper examines how recreational marijuana legalization (RML) affects first-time college enrollment in the US using a unique college-level dataset and various estimation methods such as difference-in-differences and event study.” the study’s author stated.

“I find that RML increases enrollments by approximately up to 9%, without compromising degree completion or graduation rate, and it boosts college competitiveness by offering a positive amenity, as evidenced by the rise in out-of-state enrollments relative to neighboring states.” the author stated about the study’s findings.

“In addition, I find no evidence that RML affects college prices, quality, or in-state enrollment. This effect is stronger for non-selective public colleges in early-adopting RML states.” the researcher concluded.

More colleges and universities are offering cannabis industry-focused courses, certificates, and programs around the country. Two examples can be found at St. Cloud State University in Minnesota, and the University of Nevada, Reno (UNR). St. Cloud State University currently has 300 students in its cannabis program and UNR starts its program in June 2024.

Currently, 24 states and the District of Columbia have adopted recreational cannabis legalization measures. The United States adult-use cannabis industry has generated over $20 billion in total tax revenue since the first legal recreational cannabis purchase was made in Colorado on January 1st, 2014 according to a new report by the Marijuana Policy Project.

“Through the first quarter of 2024, states have reported a combined total of more than $20 billion in tax revenue from legal, adult-use cannabis sales. In 2023 alone, legalization states generated more than $4 billion in cannabis tax revenue from adult-use sales, which is the most revenue generated by cannabis sales in a single year.” the Marijuana Policy Project stated in a press release.

Total legal cannabis sales in the United States are expected to reach $31.4 billion in 2024 according to a recent analysis by Whitney Economics. Additionally, leading cannabis jobs platform Vangst, in conjunction with Whitney Economics, estimates that the legal cannabis industry now supports 440,445 full time-equivalent cannabis jobs in the United States.

Whitney Economics also projects the following legal cannabis sales figures in the United States for the coming years:

  • 2024: $31.4 billion (9.1% growth from 2023)
  • 2025: $35.2 billion (12.1% growth from 2024)
  • 2030: $67.2 billion
  • 2035: $87.0 billion

The emerging legal cannabis industry in the United States is projected to add roughly $112 billion to the nation’s economy in 2024 according to a newly released analysis by MJBiz Daily. The projection is part of the company’s 2024 MJBiz Factbook.

“The total U.S. economic impact generated by regulated marijuana sales could top $112.4 billion in 2024, about 12% more than last year,” MJBiz stated in its initial reporting.