Green Equity: A Comprehensive Analysis of Cannabis Social Equity Programs across the United States

Presenter

Samyuktha Badri

Campus

UMass Amherst

Sponsor

Lucy Xiaolu Wang, Department of Resource Economics, UMass Amherst

Schedule

Session 3, 1:30 PM - 2:15 PM [Schedule by Time][Poster Grid for Time/Location]

Location

Poster Board C18, Poster Showcase Room (163), Row 2 (C11-C20) [Poster Location Map]

Abstract

Several US states have adopted cannabis social equity programs for minority-owned cannabis businesses, but there is little research on the programs and their market impact. The prohibition of cannabis disproportionately affected ethnic minorities, who are still underrepresented in the industry. Cannabis social equity attempts to correct these historical injustices and can potentially boost economic empowerment. However, states and counties vary in when and how programs are structured and who is eligible for benefits. Studying the impact of these programs is vital for refining policies, enhancing efficacy in promoting equity, and offering insights for implementing future cannabis social equity policies in other states.

This paper aims to provide a systematic analysis of the social equity programs implemented by fourteen US states by summer 2023. We compile comprehensive data on each program, including eligibility criteria, equity-eligible license types, and financial assistance. We then examine patterns between the income metrics of each state or county's program criteria and the years between legalization and social equity program implementation. We document the patterns in the relationships between the time to implement social equity programs post-legalization and the income percentage eligibility. We analyze these patterns through medical and recreational legalization, respectively. Additionally, we collect tax income and legal cannabis sales data from multiple sources. We will compare them in states with and without social equity programs using two sample hypothesis tests and regression analyses to examine whether social equity programs increase cannabis revenue, how it varies for disadvantaged areas, and the characteristics of effective programs.

 

 

Keywords

Cannabis Social Equity, Cannabis Entrepreneurship, Cannabis Policy

Research Area

Health Policy and Management

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