Marijuana Policy Project

The most exhaustive collection of data ever on U.S. marijuana arrests, penalties and related information finds no relationship between marijuana arrest and use rates, while penalty structures act as a price support mechanism that boosts the illegal market.

This analysis by Dale Gieringer and Richard Lee concludes that the medical marijuana business in the city of Oakland, Calif., could contribute tens of millions of dollars to the local economy.

This report -- based on U.S. government data -- details the enormous volume of marijuana harvested and sold untaxed in the U.S., where in 2006 it was the country's number one cash crop, worth more than the corn and wheat crops combined.

With the estimated retail value of the U.S. marijuana market at $113 billion, the local, state, and federal governments are forgoing $31.1 billion in potential sales tax each year. At the same time, marijuana arrests cost taxpayers $10.7 billion annually.