Reason Foundation recently published an analysis of California’s legal cannabis market and how prices and availability impact consumers/ decisions about whether to purchase legal or illegal marijuana.
California launched its legal cannabis market in Jan. 2018, but the illegal market continues to dominate the legal one. Cannabis is subject to an array of taxes assessed at the state and local levels and these taxes create a price disparity between legal and illegal marijuana products that are otherwise similar in nature. Moreover, illegal and unregulated supply chains are firmly established across California whereas legal supply chains for cannabis are newly emerging and largely fragmented
