The Social Cost of Drug Decriminalization: Overdoses, Crime, and Recriminalization in Oregon and Washington
Decriminalizing drug possession cut arrests sharply but left Oregon and Washington with a net social cost of $26.6 billion.
Abstract
What does society gain and lose when states reduce criminal penalties for drug possession? Using FBI arrest and crime records and CDC death records, I compare Oregon's and Washington's 2021 reforms with weighted comparison states that tracked them before 2021. Drug-user arrests fall 68 percent with no shift to other charges, while overdose deaths rise 34 percent and property crime 17 percent. Deaths rise in every comparison group, including groups matched on COVID, fentanyl's spread and state politics. Restoring penalties in Washington brings arrests back but not deaths down. Health and crime costs outweigh the gains from less enforcement: a net social cost of $26.6 billion by mid-2023, mostly from 1,971 excess deaths. The results show that reducing penalties for drug possession can cut arrests sharply and still leave society worse off.