Don’t Eat the Brown Acid: Induced ‘Malnovation’ in Drug Markets

AUDREY REDFORD
THE REVIEW OF AUSTRIAN ECONOMICS (2016). ADVANCED ONLINE PUBLICATION. DOI10.1007/s11138-016-0341-4

Abstract: Title II, the Controlled Substances Act (CSA), of the Comprehensive Drug Abuse Prevention and Control Act of 1970 (CDAPCA) created the present system of drug scheduling and regulation. This paper illustrates how the CSA created the incentives for induced ‘malnovation’ (innovation intended to circumvent legislation, and thus foil policymakers’ intended ends) into drug markets, namely “designer drugs.” As a result of this induced malnovation, drug markets have not only increased in the variance of products available that are often sold under similar street names, but there is also a tendency towards creating more dangerous drugs in an attempt to stay outside of the regulation.