Rules for the Marijuana Market

As voters and lawmakers in more states decide to legalize marijuana, policy makers will have to answer a fresh and difficult question: How should governments regulate the production and sale of the drug?

Beyond keeping marijuana out of the hands of minors, a good regulatory system has to limit the increase in drug abuse that is likely to accompany lower prices and greater availability after legalization. It should protect consumers from both dangerous and counterfeit products, reducing the physical risk from a psychoactive substance. And a well-regulated system should undermine and eventually eliminate the black market for marijuana, which has done great damage to society.