Cannabis dispensaries linked to economic growth and lower crime rates

Two new studies indicate that the opening of licensed recreational cannabis dispensaries is associated with both economic boosts for neighboring businesses and reductions in local crime.

Research published in the Journal of Criminal Justice found that neighborhoods with adult-use marijuana retailers experienced consistent decreases in serious crime and property crime. Researchers suggest these reductions are driven by dispensary security measures, such as the use of doormen, alarm systems, and video surveillance, which act as deterrents.

A second study, available via the Social Science Research Network, found that dispensaries act as “demand-generating anchors.” In areas studied, the number of customers at nearby establishments rose by approximately 6.82 percent, transactions increased by 8.01 percent, and revenue grew by 7.47 percent.

The economic benefits were most pronounced for food, beverage, and everyday goods businesses, particularly in walkable neighborhoods. However, the study noted that these gains were primarily concentrated among chain establishments rather than independent shops, and the growth was driven by an increase in foot traffic rather than higher spending per customer.