The supply-side effects of cannabis legalization

Table 2 Output price, input prices, and corresponding elasticity parameters of cannabis farming

	Price^a (dollars)	Input elasticity of substitution parameter^e
Output (oz)	121.250^b	N/A
Labor (per sf)	30.362^c	− 0.245
Electricity (per sf)	19.035	− 1.963
Other inputs^d (per sf)	18.554	− 1.444

Input prices are based on the one year production level of the 1500 sf indoor facility (Hawken and Prieger 2013)
^aInput prices are based on the cost per square foot
^bThe average 2020 cannabis wholesale market price per ounce (source: Branfalt (2020) and Leaflink Insights (2020))
^cIncludes general agricultural work, trimming, and management labor cost
^dThe average cost of water, soil, CO₂, nutrients, pesticide, and rent
^eSource: Schumacher and Marsh (2003)

ISSN: 2522-5782