Border effect

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Border effects refer to asymmetries in trade patterns between cities and regions of different countries and those that are located in the same country. Usually, trade volume between the former is much less. [1] Economic integration (as in the EU) may be a solution to overcome these effects. A 2017 meta-analysis of 1,271 estimates of the border effect finds that borders reduce trade by one third. [2]

More generally, "border effect" also refers to the tendency of people to purchase consumer goods in a locality that borders another jurisdiction where the desired good is either illegal or highly expensive. Several examples of this are detailed below.

Examples

The small town of Whiteclay, Nebraska, which borders Oglala Lakota County, South Dakota, was previously noted for its role as a seller of alcohol to the Pine Ridge Indian Reservation (where alcohol is illegal). This ended when the town liquor stores' licenses were not renewed in 2017.

The border effect has been repeatedly observed in the United States since 2014, when the first legalized cannabis sales began in Colorado; it has since spread to various other states with legalized cannabis. A notable example is Ontario, Oregon, which borders Idaho and first opened cannabis dispensaries in 2019. [3] Total cannabis sales from Ontario dispensaries topped $100 million in December 2020. [4]

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Border trade

Border trade, in general, refers to the flow of goods and services across the border between different jurisdictions. In this sense, border trade is a part of the normal trade that flows through the ordinary export/import legal and logistical frameworks of nations and smaller jurisdictions. However border trade specifically refers to the increase in trade in areas where crossing borders is relatively easy and where products are significantly less expensive on one side of the border than the other – often because of significant variations in taxation levels on goods. Common items involved in border trade include alcohol, tobacco, medication, recreational drugs, automobiles, automotive fuel, groceries, furniture and clothing.

This article is intended to give an overview of several arguments for and against drug prohibition.

Cannabis (drug) Psychoactive drug from the cannabis plant

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Cannabis in Colorado Overview of the use and culture of cannabis in Colorado, U.S.

Cannabis in Colorado has been legal for medical use since 2000 and for recreational use since late 2012. On November 7, 2000, 54% of Colorado voters approved Amendment 20, which amended the State Constitution to allow the use of marijuana in the state for approved patients with written medical consent. Under this law, patients may possess up to 2 ounces (57 g) of medical marijuana and may cultivate no more than six marijuana plants. Patients who are caught with more than this in their possession may argue "affirmative defense of medical necessity" but are not protected under state law with the rights of those who stay within the guidelines set forth by the state. The Colorado Amendment 64, which was passed by voters on November 6, 2012, led to recreational legalization in December 2012 and state-licensed retail sales in January 2014. The policy has led to cannabis tourism. There are two sets of policies in Colorado relating to cannabis use: those for medicinal cannabis and for recreational drug use along with a third set of rules governing hemp.

2012 Colorado Amendment 64 Ballot measure in Colorado legalizing marijuana

Colorado Amendment 64 was a successful popular initiative ballot measure to amend the Constitution of the State of Colorado, outlining a statewide drug policy for cannabis. The measure passed on November 6, 2012, and along with a similar measure in Washington state, marked "an electoral first not only for America but for the world."

Cannabis in Massachusetts Overview of the use and culture of cannabis in Massachusetts, U.S.

Cannabis in Massachusetts is legal for medical and recreational use. It also relates to the legal and cultural events surrounding the use of cannabis. A century after becoming the first U.S. state to criminalize recreational cannabis, Massachusetts voters elected to legalize it in 2016.

Cannabis in Nevada Legality of marijuana in Nevada

Cannabis in Nevada became legal for recreational use on January 1, 2017, following the passage of Question 2 on the 2016 ballot. The first licensed sales of recreational cannabis began on July 1, 2017.

Effects of legalized cannabis

The use of cannabis as a recreational drug has been outlawed in many countries for several decades. As a result of long-fought legalization efforts, several countries such as Uruguay and Canada, as well as several states in the US, have legalized the production, sale, possession, and recreational and/or medical usage of cannabis. The broad legalization of cannabis in this fashion can have numerous effects on the economy and society in which it is legalised.

Legal history of cannabis in Canada Aspect of history

The Cannabis Act (C-45) of June, 2018 paved the way for the legalization of cannabis in Canada on 17 October 2018. Police and prosecution services in all Canadian jurisdictions are currently capable of pursuing criminal charges for cannabis marketing without a licence issued by Health Canada. The Supreme Court of Canada has held that the federal Parliament has the power to criminalize the possession of cannabis and that doing so does not infringe upon the Canadian Charter of Rights and Freedoms. The Ontario Court of Appeal and the Superior Court of Ontario have, however, held that the absence of a statutory provision for medical marijuana is unconstitutional, and to that extent the federal law is of no force and/or effect if a prescription is obtained. The recreational use of cannabis has been legalized by the federal government, and took effect on 17 October 2018.

Cannabis in Ontario Cannabis in Ontario, Canada

Cannabis in Canada has been legal for medicinal purposes since 2001 under conditions outlined in the Marihuana for Medical Purposes Regulations. This was superseded by the Access to Cannabis for Medical Purposes Regulations, issued by Health Canada while seed, grain, and fibre production were permitted under licence by Health Canada.

Since 2012, various jurisdictions in the United States have legalized cannabis for recreational use. Because there are no border controls between U.S. states and citizens are allowed to travel freely between them, this has resulted in the proliferation of cannabis dispensaries located in towns that border states where cannabis remains illegal. These dispensaries can often be a significant source of revenue for the local economy of a city; for example, the city of Ontario, Oregon generated $100 million in cannabis sales less than two years after allowing dispensaries.

References

  1. Border Effects Among EU Countries: Do National Identity and Cultural Differences Matter?
  2. "Do Borders Really Slash Trade? A Meta-Analysislast=" (PDF). doi:10.1057/s41308-016-0001-5. hdl: 2027.42/132988 .{{cite journal}}: Cite journal requires |journal= (help)
  3. The Border-Town Effect: Dispensaries Boom on State Line
  4. Pot sales boom in Ontario, top $100 million – fueled in part by Idaho customers