• Mexican think tank: legalization initiatives could cost Mexican cartels about $1.5 billion each

    by  • November 6, 2012 • Analysis and Studies • 0 Comments

    A new study by the Mexican Competitiveness institute takes a look at Mexican cartel revenues and their fragility in light of legalization initiatives in Washington, Colorado, and Oregon. The study calculates hypothetical post-legalization prices in each of the three states that might legalize and estimates that consumers and distributors would select to buy domestically-produced marijuana as long as it is cheaper than the Mexican-trafficked equivalent. According to the study, this might lead to a loss of nearly $1.5 billion to the cartels if Colorado legalizes, about $1.35 billion if Washington legalizes, and about $1.8 billion if Oregon were to legalize. The study is based on previous studies by experts at RAND, including Reducing Drug Trafficking Revenues and Violence in Mexico: Would Legalizing Marijuana in California Help? by Beau KilmerJonathan P. CaulkinsBrittany M. BondPeter H. Reuter.

    View their argument in pictures (in Spanish):Mexican Center for Competitiveness Infographic

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    Steve maintains Marijuana Monitor from Oakland, California. Having grown up in the East Bay and studied at UCLA, he's had ample exposure to contemporary marijuana culture and the policy debate surrounding the issue. He believes that now, more than ever, is the time for clear-headed discussion about pragmatics.

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