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Can we effectively quantify the benefits (and any costs) of reduction in marijuana arrests?

The question in the title of this post is prompted by this recent Reason commentary by Jacob Sullum, which is headlined “A Cannabis Crackdown Contracts: After rising dramatically, marijuana arrests are falling and the trend seems likely to continue.”   Here are some data and context from the piece: 

In 1992, when Americans elected a president who said he had smoked pot without inhaling, the number of marijuana arrests in the United States began a steep climb.  It peaked in 2007, during the administration of a president who refused to say whether he had smoked pot because he worried about setting a bad example for the youth of America.  Since 2009, when a president who “inhaled frequently” because “that was the point” took office, the number of marijuana arrests has fallen steadily — a trend that continued last year, according to FBI numbers released this month.

It’s not clear exactly why pot busts exploded during the last decade of the 20th century and the first decade of the 21st century, when the annual total rose from fewer than 288,000 to almost 873,000 — a 200 percent increase.  There does not seem to be any consistent relationship between the level of marijuana consumption and the number of arrests, the vast majority of which (nearly nine out of 10 last year) involved simple possession rather than cultivation or distribution. Judging from survey data on marijuana use, arrests did not rise in response to increased consumption; nor did the cannabis crackdown have a noticeable deterrent effect.  The risk of arrest for any given pot smoker rose substantially between 1991 and 2007 but remained small.

In 1991, according to the National Household Survey on Drug Abuse (NHSDA), about 15 million Americans smoked pot.  That year there were about 288,000 marijuana arrests, one for every 52 cannabis consumers.  In 2007, according to the National Survey on Drug Use and Health (successor to the NHSDA), about 25 million Americans smoked pot.  That year there were about 873,000 marijuana arrests, one for every 29 cannabis consumers.

Although the overall risk of arrest is small, it is decidedly higher for blacks and Latinos. In 2010, according to a report from the American Civil Liberties Union, blacks were nearly four times as likely to be arrested for marijuana possession as whites, even though survey data indicated they were no more likely to smoke pot.  In some jurisdictions the black-to-white risk ratio was even higher.  It was 8 to 1 in the District of Columbia, which helps explain the dramatic turnaround in black Washingtonians’ opinions about marijuana legalization.

The good news is that the downward trend in marijuana arrests since 2009 seems likely to continue, helped along by the spread of decriminalization and legalization.  In recent years California, Colorado, Maine, Massachusetts, and Washington have changed their marijuana laws so that people caught with small amounts are no longer arrested.  That change has eliminated tens of thousands of marijuana arrests each year — more than 50,000 in California alone. Under ballot initiatives approved this month, Alaska and Washington, D.C., will eliminate all penalties for possessing small amounts of marijuana. (Possessing up to an ounce was already a citable offense in Oregon, where voters also approved marijuana legalization this month.)…

Even in New York City, where the cannabis crackdown has been especially noticeable, police are arresting fewer pot smokers, a trend that is likely to accelerate as a result of a policy change that took effect last week.  Low-level marijuana possession arrests by the New York Police Department (NYPD) skyrocketed from about 3,000 in 1994, when Rudolph Giuliani took office as mayor, to more than 51,000 six years later.  The crackdown continued during Michael Bloomberg’s administration, when the NYPD arrested an average of nearly 39,000 pot smokers each year, compared to 24,487 under Giuliani, 982 under David Dinkins, and 2,259 under Ed Koch, according to data gathered by Queens College sociologist Harry Levine.

As the question in the title of this post highlights, I am eager to attach some kind of benefit (and perhaps cost) metric to these data about reduced arrest. In the context of incarceration changes, we know each prison year served costs the government about $30,000 taxpayer dollars (while also potentially preventing some criminal activity which is much harder to quantify). I am inclined to speculate that there must be $100 in administrative costs associated with formal arrests, which would mean that every 10,000 fewer marijuana arrests benefits taxpayers with about $1,000,000 in savings.