Cameron M Ellis, Martin F Grace, Rhet A Smith, Juan Zhang
Published in Health Economics
While many states have legalized medical cannabis, many unintended consequences remain under-studied. We focus on one potential detriment-the effect of cannabis legalization on automobile safety. We examine this relationship through auto insurance premiums. Employing a modern difference-in-differences framework and zip code-level premium data from 2014 to 2019, we find that premiums declined, on average, by $22 per year following medical cannabis legalization. The effect is more substantial in areas near a dispensary and in areas with a higher prevalence of drunk driving before legalization. We estimate that existing legalization has reduced health expenditures related to auto accidents by almost $820 million per year with the potential for a further $350 million reduction if legalized nationally.
https://www.cannabisclinicians.org/wp-content/uploads/2021/01/cannabis-nomenclature-kenzi-riboulet-zimouli-1.jpg8001200Michelle Smithhttps://www.cannabisclinicians.org/wp-content/uploads/2020/06/scc_logo-long-R-2-1.pngMichelle Smith2022-06-18 16:32:012022-06-18 16:32:01Medical cannabis and automobile accidents: Evidence from auto insurance