Study: Net Social Benefit Of Czech Legalization Is 34.4-107.6 Million Euros Annually
A team of researchers affiliated with Charles University in the Czech Republic and the University of New South Wales in Australia recently collaborated on a study that examined the potential ‘social benefit’ effects of adult-use cannabis legalization in Czechia.
“Cannabis is the most commonly used illicit drug worldwide. In countries with repressive drug policies, the costs of its prohibition plausibly outweigh the benefits.” the researchers stated in their study, the findings of which were published in the academic publication Journal of Cost-Benefit Analysis.
In recent years, a major push has been underway in the Czech Republic to modernize the nation’s cannabis policies to permit cannabis use and other activities by adults. Currently, cannabis is legal for adult use at a national level in Uruguay, Canada, Malta, Luxembourg, Germany, and South Africa.
Top courts in a handful of other nations have rendered decisions providing adults some degree of legal protection for certain recreational cannabis activities.
“We conduct a cost–benefit analysis of cannabis legalization and regulation in the Czech Republic, taking into consideration alternative scenarios designed using parameters from the known effects of cannabis legalization in selected U.S. states, Canada, and Uruguay. Our analysis focuses on tax revenues, law enforcement costs, the cost of treatment and harm reduction, and the value of Quality Adjusted Life Years (QALYs).” the team of international researchers stated about their Czech-focused study’s methodology.
“Under all the projected scenarios, the identified benefits of legalizing cannabis for personal use exceed the potential costs. The estimated net social benefit of legalization is in the range of 34.4 to 107.6 million EUR per year (or between 3.2 and 10.1 EUR per capita), depending on the size of the cannabis market and the development of cannabis prices after legalization.” the researchers concluded.
Starting on April 1st, 2025, all licensed doctors in the Czech Republic can prescribe medical cannabis. Previously, only specialist doctors could do so. Doctors in the Czech Republic prescribed 318.7 kilograms of medicinal cannabis in 2024 to an average of roughly 3,300 patients per month.
Additionally, starting in July of this year, the Czech Republic will regulate sales of cannabis products containing up to one percent THC.