Costs of mandatory cannabis testing in California

Compared to other U.S. states, California arguably has some of the most strict laws regarding the laboratory testing of cannabis. Economically, what have been some of the effects of these regulations? Valdes-Donoso et al. attempt to contribute to that conversation in this 2019 paper published in California Agriculture. Using state regulations, expert opinions, primary data from California’s laboratories, and data from cannabis testing equipment manufacturers, the authors attempt to estimate the cost per pound of testing and sampling under the state’s regulatory framework. This includes what they consider to be particularly costly: cases where cannabis is rejected for testing failure. They conclude their research by discussing the economic and regulatory implications of their findings, including supply and demand issues, costs of legal vs. illegal cannabis, and comparisons to other state-mandated agricultural testing in the state.

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