Aside from a reduction in traffic fatalities and limiting teen use of marijuana, legalization can also bring about larger economic benefits. Advocates for legalization argue that even if the policy results in an increase in marijuana consumption, costs of treating marijuana dependence, and all related problems, they are still smaller than the savings in criminal justice system savings8. Additionally, if alcohol and marijuana are substitutes – which this paper suggests – then the decrease in alcohol consumption arises from marijuana legalization could greatly improve labor productivity by reducing total workplace productivity8. Furthermore, costs associated with alcohol consumption amount to 1-3% of the GDP in high income countries, so marijuana
