Social Policy Research Centre
Assessing the economic consequences of cannabis policy options
Published on the 31 May 2026
This PhD project conducted by Marian Shanahan examined the costs, benefits, and public preference for different cannabis policies in NSW, Australia. This project aimed to estimate the current societal costs related to cannabis, and to explore the economic costs and benefits of alternate legalised and regulated policy options in NSW.
A cost benefit analysis was undertaken to assess the costs and benefits from two policy options: prohibition with cannabis cautioning scheme and a legal, regulated supply model. To investigate public preference for cannabis policy options, a discrete choice experiment with a representative sample was conducted.
The results from the cost benefit analysis indicate there is no clear difference in the net social benefit between the two policy options. The results from the discrete choice experiment revealed that compared to the current policy there is a moderate preference for legalisation of cannabis among a community sample and strong preference against the complete criminalisation of cannabis. The results demonstrate the trade-offs between different harms and benefits as well as the interactions between personal characteristics and the policy preferences.
Research Centre
Research Area
Drug Policy Modelling Program
- Years
- Publications
- Funding agency
- Collaborators
2007 to 2011
Shanahan, M. (2011). Assessing the economic consequences of two cannabis policy options. Doctoral thesis, UNSW Sydney. https://doi.org/10.26190/unsworks/23757
Shanahan, M., Gerard, K. & Ritter, A. (2014). Preferences for policy options for cannabis in an Australian general population: a discrete choice experiment. International Journal of Drug Policy. https://doi.org/10.1016/j.drugpo.2014.03.005
Shanahan, & Ritter, A. (2014). Cost benefit analysis of two policy options for cannabis: status quo and legalisation. PLOS ONE. https://doi.org/10.1371/journal.pone.0095569
Shanahan, M., & Ritter, A. (2014). Intangible outcomes from a policy change: using contingent valuation to quantify potential stigma from a cannabis offence. Journal of Experimental Criminology. https://doi.org/10.1007/s11292-013-9176-1
Shanahan, M., & Ritter, A. (2013). Confronting the challenges of conducting a CBA of cannabis policies. Drugs: Education, Prevention & Policy. https://doi.org/10.3109/09687637.2013.763906
ARC Discovery Grant
