Journal article
Medical cannabis and automobile accidents: Evidence from auto insurance
Health economics, Vol.31(9), pp.1878-1897
09/2022
DOI: 10.1002/hec.4553
PMID: 35691014
Abstract
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.
Details
- Title: Subtitle
- Medical cannabis and automobile accidents: Evidence from auto insurance
- Creators
- Cameron M. Ellis - Temple UniversityMartin F. Grace - Temple UniversityRhet A. Smith - University of Arkansas at Little RockJuan Zhang - Eastern Kentucky University
- Resource Type
- Journal article
- Publication Details
- Health economics, Vol.31(9), pp.1878-1897
- Publisher
- Wiley
- DOI
- 10.1002/hec.4553
- PMID
- 35691014
- ISSN
- 1057-9230
- eISSN
- 1099-1050
- Number of pages
- 20
- Language
- English
- Date published
- 09/2022
- Academic Unit
- Finance
- Record Identifier
- 9984380389102771
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