Hemp in the United States: A Case Study of Regulatory Path Dependency

27 Pages Posted: 27 Nov 2018

See all articles by Trey Malone

Trey Malone

Michigan State University - Department of Agricultural, Food and Resource Economics

Kevin D. Gomez

George Mason University - Department of Economics

Date Written: November 13, 2018

Abstract

The Agricultural Act of 2014 allowed for federally funded research on hemp for the first time since 1937. Since 2014, pro-hemp legislation has received increasingly bipartisan support, culminating with the Hemp Farming Act of 2018, which would remove industrial hemp from its current Schedule 1 listing and allow hemp to be treated like any other agricultural commodity. In part because of this legalization, hemp production in the United States has the potential to increase substantially. This study describes what is known about the economic and regulatory considerations of US hemp agriculture through the lens of path dependency. Important questions remain regarding the legal and regulatory landscape of hemp and are further complicated by its current listing as a Schedule 1 drug.

Keywords: industrial hemp, agricultural economics, institutional economics, path dependence

JEL Classification: K23, Q18, R52

Suggested Citation

Malone, Trey and Gomez, Kevin, Hemp in the United States: A Case Study of Regulatory Path Dependency (November 13, 2018). Mercatus Research Paper. Available at SSRN: https://ssrn.com/abstract=3290881 or http://dx.doi.org/10.2139/ssrn.3290881

Trey Malone (Contact Author)

Michigan State University - Department of Agricultural, Food and Resource Economics ( email )

MI
United States

Kevin Gomez

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

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