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Spatial Dynamics of the Livestock Sector in the United States: Do Environmental Regulations Matter?

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  • Herath, Deepananda P.B.
  • Weersink, Alfons
  • Carpentier, Chantal Line

Abstract

This study examines the factors affecting state annual share of national inventory for each of the hog, dairy, and fed-cattle sectors using data from the 48 contiguous states for 1976 to 2000. The paper develops a state specific, time-series environmental stringency measure and introduces instrumental variables to control for the possible endogeneity bias between livestock production decisions and regulatory stringency. The results indicate that differences in the severity of environmental regulations facing livestock producers have had a significant influence on production decisions in the dairy, and particularly the hog sector.

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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 30 (2005)
Issue (Month): 01 (April)
Pages:

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Handle: RePEc:ags:jlaare:30783

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Web page: http://waeaonline.org/
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Related research

Keywords: environmental regulation stringency; fixed-effects model; instrumental variable; livestock production; location choice; panel data analysis; pollution havens; Environmental Economics and Policy;

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References

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  1. Gollehon, Noel R. & Caswell, Margriet & Ribaudo, Marc & Kellogg, Robert L. & Lander, Charles & Letson, David, 2001. "Confined Animal Production And Manure Nutrients," Agricultural Information Bulletins 33763, United States Department of Agriculture, Economic Research Service.
  2. Levinson, Arik, 1996. "Environmental regulations and manufacturers' location choices: Evidence from the Census of Manufactures," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 5-29, October.
  3. List, John A. & Co, Catherine Y., 2000. "The Effects of Environmental Regulations on Foreign Direct Investment," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 1-20, July.
  4. Brian Roe & Elena G. Irwin & Jeff S. Sharp, 2002. "Pigs in Space: Modeling the Spatial Structure of Hog Production in Traditional and Nontraditional Production Regions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 259-278.
  5. Coughlin, Cletus C & Terza, Joseph V & Arromdee, Vachira, 1991. "State Characteristics and the Location of Foreign Direct Investment within the United States," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 675-83, November.
  6. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, September.
  7. Fredriksson, Per G. & Millimet, Daniel L., 2002. "Strategic Interaction and the Determination of Environmental Policy across U.S. States," Journal of Urban Economics, Elsevier, vol. 51(1), pages 101-122, January.
  8. Virginia D. McConnell & Robert M. Schwab, 1990. "The Impact of Environmental Regulation on Industry Location Decisions: The Motor Vehicle Industry," Land Economics, University of Wisconsin Press, vol. 66(1), pages 67-81.
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Citations

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Cited by:
  1. Sneeringer, Stacy E. & Hogle, Regina, 2008. "Variation in Environmental Regulations in California and Effects on Dairy Location," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), October.
  2. Boonsaeng, Tullaya & Wohlgenant, Michael K., 2006. "The Demand for Livestock by the U.S. Meat Processing Industry," 2006 Annual meeting, July 23-26, Long Beach, CA 21120, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Alfons Weersink & Christin Eveland, 2006. "The Siting of Livestock Facilities and Environmental Regulations," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(1), pages 159-173, 03.
  4. Sneeringer Stacy E, 2009. "Effects of Environmental Regulation on Economic Activity and Pollution in Commercial Agriculture," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-35, July.
  5. Hadrich, Joleen C. & Wolf, Christopher A. & Lupi, Frank, 2008. "Manure Handling System Attributes Impact on Manure Management Investment Decisions: A Random Utility Model Approach," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6532, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Malcolm, Scott A. & Aillery, Marcel P. & Weinberg, Marca, 2009. "Ethanol and a Changing Agricultural Landscape," Economic Research Report 55671, United States Department of Agriculture, Economic Research Service.
  7. Weersink, Alfons & Raymond, Mark, 2007. "Environmental regulations impact on agricultural spills and citizen complaints," Ecological Economics, Elsevier, vol. 60(3), pages 654-660, January.
  8. Marc O. Ribaudo & Robert C. Johansson, 2007. "Nutrient Management Use at the Rural-Urban Fringe: Does Demand for Environmental Quality Play a Role?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(4), pages 689-699.
  9. Chad Lawley & Hartley Furtan, 2008. "The Political Trade-Off Between Environmental Stringency And Economic Development In Rural America," Journal of Regional Science, Wiley Blackwell, vol. 48(3), pages 547-566.
  10. Syeda Khaleda & Yuji Murayama, 2013. "Geographic Concentration and Development Potential of Poultry Microenterprises and Value Chain: A Study Based on Suitable Sites in Gazipur, Bangladesh," Social Sciences, MDPI, Open Access Journal, vol. 2(3), pages 147-167, August.
  11. Nene, Gibson & Azzam, Azzeddine M. & Schoengold, Karina, 2009. "Environmental Regulations and the Structure of U.S. Hog Farms," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49395, Agricultural and Applied Economics Association.
  12. Mosnier, Claire & Wieck, Christine, 2010. "Determinants of spatial dynamics of dairy production: a review," Discussion Papers 162896, University of Bonn, Institute for Food and Resource Economics.

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