The recreational use of cannabis should be legalised in Queensland and such a move could reap millions for the state's coffers, a Brisbane-based economics firm has argued in a new report.

The report, released this month by Bluegreen Economics, argues for the legalisation of recreational cannabis use, which it says would add tens of millions of dollars to the Queensland economy.

While Parliament passed legislation in October that allowed for the medicinal, prescribed use of cannabis products, Bluegreen economists say the state government should go a step further. Credit:Getty Images

The Queensland Parliament unanimously passed legislation in October, which Premier Annastacia Palaszczuk has hailed as Australia's "most progressive", that allowed for the medicinal, prescribed use of cannabis products.

Citing the Colorado experience in the United States, the Bluegreen economists said the state government should go a step further.