New York could create up to 50,800 jobs and rake in billions in new business activity in the coming years if recreational cannabis is legalized this year, according to a new economic analysis.
A report released Wednesday by James Parrott of the Center of NYC Affairs at The New School and economist Michele Mattingly argues that marijuana legalization in 2021 could provide significant relief to the the economic and budget shortfalls caused by the coronavirus pandemic across the state.
The analysis was funded by a company pushing marijuana legalization: Scotts Miracle-Gro, the major fertilizer manufacturer whose product could be used by prospective cannabis growers.
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In 2021, New York is likely to join the ranks of the states that have legalized recreational-use marijuana. This report generates original estimates of New York market demand for marijuana sales over the 2020 to 2027 period. We customize the parameters of a regional input-output model to develop New York-specific estimates of the employment, income, and economic impact of the adult-use marijuana supply chain. We estimate New York tax revenues related to marijuana sales and estimate the state and local tax revenues related to the economic activity generated by the marijuana supply chain. Our analysis is informed by the experience of other states where adult-use marijuana sales are legal.