How tax structures for retail cannabis shape cannabis use among youth and young adults: evidence from a volumetric choice experiment.

Researchers conducted a study to understand how different cannabis tax structures influence consumption patterns among U.S. teenagers and young adults. States have implemented various taxation approaches—some taxing based on product weight, others on retail price, and some on potency (THC content). This study used a volumetric choice experiment to simulate how young people might respond to these different tax schemes, examining whether tax policy design meaningfully affects their likelihood to purchase and use cannabis.

The key finding is that tax structure matters significantly for consumption behavior. By testing how adolescents and young adults react to different tax frameworks in controlled experimental conditions, researchers can predict real-world impacts before policies are implemented. This research suggests that taxes based on potency or price may affect youth cannabis use differently than weight-based taxes, with important implications for public health and state revenue generation.

These findings are crucial for policymakers because they provide evidence that "one-size-fits-all" taxation approaches won't work equally across different populations. Understanding how youth specifically respond to various tax designs helps states craft more effective regulations that balance public health goals—particularly preventing youth use—with legitimate revenue objectives and economic considerations for the legal cannabis industry.