Weak correlation between THC concentration and cannabis price

I’m posting a table covering cannabis sales in Washington that was prepared by Ben Hansen, Keaton Miller, and Caroline Weber – academic economists out west, the first two authors at the University of Oregon, the last at the University of Washington.  They authorized me to share it.  Click here:  table_for_pat_oglesby

The table shows only a small correlation, 0.188, between (reported or claimed) THC concentration and price per gram, so it seems to chip away at the claim that a price tax base is a pretty good proxy for a THC tax.

Meanwhile, weight taxes are proliferating.  California’s tax for flower is $9.25 per ounce, for leaves or trim, it’s $2.75.  AK, NV, CO, and now ME also have multiple categories of product that bear different weight based taxes.  Those weight-based taxes may well correlate with potency better than price-based taxes do.

 

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