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Original Article

Estimating the dollar value of the illicit market for cannabis in New Zealand

, , &
Pages 227-234 | Received 23 Mar 2004, Accepted 18 Jun 2004, Published online: 12 Jul 2009
 

Abstract

New data collected on the procurement and purchase of cannabis in the 2001 New Zealand National Drug Survey are used to estimate the dollar value of the illicit market for cannabis as well conduct other economic analyses of the illicit purchase of cannabis in New Zealand. Eighty-four per cent of last-year cannabis users received at least some of their cannabis ‘free’, 38% ‘bought’ at least some of their cannabis, while only 8% grew any of their supply. By proportion of the total dollar value of the cannabis market, sales of ‘tinnies’ (1.5 g) had the biggest share of the market (30%), followed closely by $50 bags (4 g) (29%) and ounces (28 g) (26%). The average price paid per gram of cannabis fell steadily from $20.50 per gram for a joint to $5.63 per gram for a pound ($NZ). The distribution of spending on cannabis was positively skewed (average $1313, median $400, mode $100, range $5 – 55 200, interquartile range $100 – 1200) ($NZ). The bottom 50% of cannabis buyers spent a median amount on cannabis of $100 a year while the top 5% spent a median amount of $7425 a year ($NZ). The dollar value of the illicit cannabis market was estimated to be $190 million ($131 – 249 million) ($NZ). Three limitations are acknowledged with the market estimate calculated: (i) the truncated age range of the survey data (13 – 45 years); (ii) the likely underestimation of heavy cannabis use in household drug surveys; (iii) a degree of ‘double-counting’ when the same cannabis is bought and sold a number of times. [Wilkins C, Reilly JL, Pledger M, Casswell S. Estimating the dollar value of the illicit market for cannabis in New Zealand. Drug Alcohol Rev 2005; 24:227 – 234]

Dr Chris Wilkins, Researcher, Centre for Social and Health Outcomes Research and Evaluation (SHORE), Massey University, Auckland, New Zealand, James Reilly, Statistician, Centre for Social and Health Outcomes Research and Evaluation (SHORE), Massey University, Auckland, New Zealand, Dr Megan Pledger, Statistician, Centre for Social and Health Outcomes Research and Evaluation (SHORE), Massey University, Auckland, New Zealand, Professor Sally Casswell, Director Centre for Social and Health Outcomes Research and Evaluation (SHORE), Massey University, Auckland, New Zealand. Correspondence to Dr Chris Wilkins, Centre for Social and Health Outcomes Research and Evaluation (SHORE), Massey University, PO Box 6137, Wellesley Street, Auckland, New Zealand. Tel: 64 9366 6136; E-mail: [email protected]

Dr Chris Wilkins, Researcher, Centre for Social and Health Outcomes Research and Evaluation (SHORE), Massey University, Auckland, New Zealand, James Reilly, Statistician, Centre for Social and Health Outcomes Research and Evaluation (SHORE), Massey University, Auckland, New Zealand, Dr Megan Pledger, Statistician, Centre for Social and Health Outcomes Research and Evaluation (SHORE), Massey University, Auckland, New Zealand, Professor Sally Casswell, Director Centre for Social and Health Outcomes Research and Evaluation (SHORE), Massey University, Auckland, New Zealand. Correspondence to Dr Chris Wilkins, Centre for Social and Health Outcomes Research and Evaluation (SHORE), Massey University, PO Box 6137, Wellesley Street, Auckland, New Zealand. Tel: 64 9366 6136; E-mail: [email protected]

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