The Heterogeneous Effects of Cannabis Dispensaries on Crime: The Importance of Foot Traffic

38 Pages Posted: 12 Jun 2024

See all articles by Thomas Lebesmuehlbacher

Thomas Lebesmuehlbacher

Xavier University

Justin Roush

Xavier University

Rhet A. Smith

University of Texas at El Paso - College of Business Administration

Abstract

This paper pairs exact dispensary locations with city block level crime data to study the impact of medical cannabis dispensaries on crime in the state of Florida from 2016-2019. Leveraging a Florida state law that requires broadly uniform security provisions across dispensaries, we capture important dispensary heterogeneity by incorporating customer volume and local non-dispensary foot traffic with smartphone geopositional data. We use not-yet-operational dispensary locations as a control group and a geo-spatial difference-in-differences framework and find reductions in larceny, vehicle burglary, and motor vehicle theft following the opening of high-volume dispensaries. We fail to find evidence of similar deterrent effects near low-volume dispensaries, and instead, find larceny increases when low-volume dispensaries open in low foot traffic areas. The heterogeneous results suggest foot traffic is a significant factor impacting crime near dispensaries.

Keywords: Medical Cannabis, Crime, Marijuana, Dispensary, Deterrence, Eyes on the Street

Suggested Citation

Lebesmuehlbacher, Thomas and Roush, Justin and Smith, Rhet, The Heterogeneous Effects of Cannabis Dispensaries on Crime: The Importance of Foot Traffic. Available at SSRN: https://ssrn.com/abstract=4862368 or http://dx.doi.org/10.2139/ssrn.4862368

Thomas Lebesmuehlbacher

Xavier University ( email )

3800 Victory Parkway
Cincinnati, OH 45207
United States

Justin Roush

Xavier University ( email )

Cincinnati, OH 45207
United States

Rhet Smith (Contact Author)

University of Texas at El Paso - College of Business Administration ( email )

University Library - Acquisitions Department
500 West University Avenue
El Paso, TX 79968
United States

HOME PAGE: http://https://sites.google.com/view/rhetsmith/

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