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Hemp in the United States: A Case Study of Regulatory Path Dependence

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  • Trey Malone
  • Kevin Gomez

Abstract

The Agricultural Act of 2014 allowed for federally funded research on hemp for the first time since 1937. Since 2014, pro‐hemp legislation has received increasingly bipartisan support, culminating with the Hemp Farming Act of 2018, which would remove industrial hemp from its current listing as a Schedule 1 drug, and allow hemp to be treated like any other agricultural commodity. In part because of this legalization, hemp production in the United States has the potential to increase substantially. This study describes what is known about the economic and regulatory considerations of U.S. hemp agriculture through the lens of path dependency. Important questions remain regarding the legal and regulatory landscape of hemp, and are further complicated by its current listing as a Schedule 1 drug.

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  • Trey Malone & Kevin Gomez, 2019. "Hemp in the United States: A Case Study of Regulatory Path Dependence," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(2), pages 199-214, June.
    • Handle: RePEc:wly:apecpp:v:41:y:2019:i:2:p:199-214
    DOI: 10.1093/aepp/ppz001
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    Cited by:

    1. Staples, Aaron J. & Malone, Trey & McFadden, Brandon R., 2022. "CBD and THC: Who Buys It, and Why?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 53(3), November.
    2. Jane Kolodinsky & Hannah Lacasse & Katherine Gallagher, 2020. "Making Hemp Choices: Evidence from Vermont," Sustainability, MDPI, vol. 12(15), pages 1-15, August.
    3. Dhoubhadel, Sunil P., 2021. "Challenges, Opportunities, and the Way Forward for the U.S. Hemp Industry," Western Economics Forum, Western Agricultural Economics Association, vol. 19(2), December.
    4. Staples, Malone & Chambers, Dustin & Malone, Trey, 2020. "The economic geography of beer regulations," Center for Growth and Opportunity at Utah State University 307180, Center for Growth and Opportunity.
    5. Beatrice Dingha & Leah Sandler & Arnab Bhowmik & Clement Akotsen-Mensah & Louis Jackai & Kevin Gibson & Ronald Turco, 2019. "Industrial Hemp Knowledge and Interest among North Carolina Organic Farmers in the United States," Sustainability, MDPI, vol. 11(9), pages 1-17, May.
    6. Ifeoluwa Adesina & Arnab Bhowmik & Harmandeep Sharma & Abolghasem Shahbazi, 2020. "A Review on the Current State of Knowledge of Growing Conditions, Agronomic Soil Health Practices and Utilities of Hemp in the United States," Agriculture, MDPI, vol. 10(4), pages 1-15, April.
    7. Jeffrey S. Young & Tanner J. McCarty, 2023. "Adapting network theory for spatial network externalities in agriculture: A case study on hemp cross‐pollination," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(4), pages 1267-1287, August.
    8. Aaron J. Staples & Dustin Chambers & Trey Malone, 2022. "How many regulations does it take to get a beer? The geography of beer regulations," Regulation & Governance, John Wiley & Sons, vol. 16(4), pages 1197-1210, October.
    9. Waea, 2021. "Western Economics Forum: A Journal of the Western Agricultural Economics Association, v.19, Issue 2, Fall 2021," Western Economics Forum, Western Agricultural Economics Association, vol. 19(2), December.

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