U.S. researchers have suggested that legalizing marijuana in California could cut the price by as much as 80 percent and increase consumption.

They prepared the report in an effort to outline objectively the key issues as California weighs whether to legalize marijuana in a November referendum, Researchers at the Rand Corp. have said.

It has been reported that although the California Board of Equalization estimated taxing legal marijuana could raise more than $1 billion in revenue, the Rand study warns estimating tax revenue potential in this case is fraught with uncertainty because of factors beyond the state's control, such as the levels of taxation, the amount of tax evasion and the response by the federal government.

In addition, it is hard to estimate how people would react to the lower price of marijuana.

The report further said, "Even under a scenario with high taxes of $50 per ounce of marijuana and a moderate rate of tax evasion, 25 percent, researchers cannot rule out consumption increases of 50 percent to 100 percent, and possibly even larger."

Lead author Beau Kilmer said in a statement, "There is considerable uncertainty about the impact that legalizing marijuana in California will have on consumption and public budgets. No government has legalized the production and distribution of marijuana for general use, so there is little evidence on which to base any predictions." (With Inputs from Agencies)