Drug-related harm reduction and local communities: Evidence from Dutch drug consumption rooms

Sofia Franco and Hans Koster

No 19414, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Drug-consumption rooms (DCRs), also known as supervised injection sites or safe injection rooms, provide a secure environment for the consumption of both legal and illegal drugs. The primary goals of DCRs are to enhance the health conditions of drug users and to reduce the public nuisance associated with drug use. Using detailed panel micro-data from the Netherlands, we find that DCRs reduce drug use in the surrounding neighborhoods by about 13 percentage points, equivalent to approximately three-quarters of a standard deviation. Additionally, drug-related crime is reduced by 24%. House prices increase by 2.5%, but this effect is observed only in low-income neighborhoods. These findings indicate that controlled drug use in DCRs can significantly enhance neighborhood quality, particularly in economically disadvantaged areas.

JEL-codes: H41 I18 I31 R30 R38 (search for similar items in EconPapers)
Date: 2024-08
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