The impact of price on the demand for marijuana and cigarettes

Institution:	University of California, San Francisco
Investigator(s):	Tingting Yao,
Award Cycle:	2019 (Cycle 30)	Grant #: T30IR0897	Award: $937,500
Subject Area:	State and Local Tobacco Control Policy Research
Award Type:	High Impact Research Project Award

Abstracts

Initial Award Abstract

The sales of recreational marijuana became legal in California on January 1, 2018 for adults aged 21+. In 2016, 9.5% of California adults and 14.5% of California high school students reported having used marijuana at least one day in the past 30 days, compared to 13.6% of California adults and 4.3% of California high school students who reported smoked cigarettes. Previous studies emphasize the importance of understanding the interdependence of cigarettes and marijuana and suggest that policies affecting one may have unintended consequences on other. Thus, understanding how tobacco use responds to changes in policy of legalization of recreational marijuana sales in California is important. This study is to examine whether the legalization of recreational marijuana sales have an impact on cigarette consumption in California. It has four specific aims: Aim 1. Estimate the responsiveness of marijuana consumption to marijuana price and cigarette price changes. We will examine whether legalization of recreational marijuana sales and cigarette price changes have impact on the marijuana consumption. Aim 2. Estimate the responsiveness of cigarette consumption to marijuana price changes. We will examine whether legalization of recreational marijuana sales have impact on cigarette consumption. Aim 3. Estimate the responsiveness of marijuana consumption to marijuana price and cigarette price changes and the responsiveness of cigarette consumption to marijuana price changes simultaneously. We will examine whether legalization of recreational marijuana sales have impact on cigarette and marijuana consumption at same time. Aim 4. Estimate the responsiveness of marijuana consumption to marijuana price and cigarette price changes as well as responsiveness of cigarette consumption to marijuana price changes separately for different subpopulations stratified by age, household income, education, and race/ethnicity. We will examine whether legalization of recreational marijuana sales have impact on marijuana and cigarette consumption separately for subpopulations with higher prevalence of marijuana use: (1) youth and young adults (age 12-20), (2) low-income household; (3) less educated people; and (4) African Americans. Our findings will be useful for determining the potential impact of recreational marijuana legalization on cigarette consumption in California.