Even as Canada approaches its third year of legalizing cannabis, some countries still ban licensed shops. Other countries that are considering legalizing cannabis also appear to be lowering the legal chances. But my research shows that these policies may not work.

Canada legalized recreational cannabis in October. 17, 2018. After initial inventory shortages eased in spring 2019, retail and retail openings rose. Monthly sales reached $339 million in July 2021 and total national stores now exceed 2,600.

The number of employees has increased. In 2018, 14% of the population aged 15 and over admitted to using cannabis. This number reaches 20% in 2020, of 6.2 million workers. The Canadian way of doing cannabis is very different from that of the United States. But these two countries have one thing in common: local governments refuse to license cannabis stores. Prohibition in local shops 

Millions of Canadians live in places where licensed stores are banned, including cities like Mississauga, Ontario, and Surrey, British Columbia. 

Meanwhile, in the United States, many cities in California decided not to allow retail stores when the sale of recreational products began there in 2018. Recently, 71% of the city of New Jersey and 90% of the people in Maine did the same. New York City has until December 31 to decide. Approved stores can provide economic benefits. But some politicians and residents fear it will increase cannabis use and crime. This apparent agreement inspired my research.

Stores, Markets and Employees 

My study compared the per capita growth in the number of stores, sales of recreational cannabis and the number of users from 2018 to 2020 in Canada. The store is connected to sales. Differences in regional store growth explain 46 percent of the differences in market growth. That’s a lot, considering that many other factors such as prices, customer preferences and weather also affect sales.

On the other hand, the growth of stores explains only 8% of the growth in the number of employees. The simple behavior of the quarter explains the increase in the number of employees.

In other words, the increase in the number of employees is almost the same, regardless of the number of stores opened. But since there are more stores, users are buying more legally.

One reason for the weak relationship between stores and workers is that worker estimates from government surveys have a large margin of error. They may not notice subtle changes.

Legal or illegal trade 

Another possible cause is the black market. Approved stores increase access to legal products. But they increase the chances of access if illegal traders are already spread. Take Hamilton, a city in southern Ontario, as an example. As of January 2019, the country has 34 unofficial advertising agencies and several online retailers. So, when the first licensed store opened three months later, it made legal products suddenly available. But the country’s cannabis collection is far from over. It is likely due to media restrictions. Cannabis marketers cannot use advertising blitzes or free samples to generate demand. The increase in the number of workers in Canada between 2018 and 2020 can result from the removal of criminal sanctions through legalization. This may encourage non-employees to enter, even if stores are open nearby. Or growth may represent a continuous process. Cannabis consumption in Canada has been increasing since 2010. My study examined outcomes at the regional level. But it also has an impact on other levels of government. 

Is this crime always a crime?

At the local level, politicians banning licensed stores may think they are protecting residents. But study shows that the community will experience similar growth in workers when the law is passed whether they allow shops or not.

These employees will increase their shopping legally if local stores open their doors. But without these stores, users will continue to visit illegal locations where products can be mislabeled or contaminated.

This means that banning local shops is more likely to cause crime and health problems than to reduce them. But maybe it’s better for politicians to delay in the license shop while the local laws are updated. But beyond that, marketers who leave out run the risk of becoming politicians who hide problems instead of solving them. A similar concept applies at the national level when countries adopt laws.

Legalizing countries need legal access

For example, a Mexican court ruled in 2018 that cannabis should be legal there. But Congress has not yet enacted it. The proposed legislation would legalize cannabis but make it less accessible.

South Africa has been slow to implement its own court decisions in 2018. Both countries should reconsider their indifference. If they do not provide an effective legal opportunity to achieve legal goals, they risk suffering the disadvantages of legal support without receiving its benefits. The main winners will be the illegal traders.

Switzerland and the Netherlands should also consider this question during their cannabis pilot studies next year. As other countries are considering legalization, such as Luxembourg, Italy, Germany and the United States. 

Of course, it’s not just a store to sell. Research shows that abundant resources, good trading times and competitive prices are also important. But don’t forget about product quality or packaging design.