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Interstate Differences in the Cost of Complying With Feedlot Environmental Regulations: an Initial Investigation

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  • Ridley, Emma J.H.
  • Morison, Julian B.
  • Griffith, Garry R.
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    Abstract

    Environmental regulations impose construction and recurring costs on Australian feedlot operators. However to date there has been no published empirical information on these costs of environmental regulation. Additionally, variations in regulations between states and inconsistencies in the application of these regulations may have resulted in a pattern of location different from that dictated by least cost grain and feeder cattle inputs and processing and transportation services. The aim of this study was to attempt to measure the cost of complying with environmental regulations by large commercial feedlots in different Australian states. From data provided from a survey of 20 commercial feedlots it was found that the average cost of complying with these regulations was $36 per head of capacity. Substantial differences in these costs were found between New South Wales and Queensland, the two major producing states, with the more complex regulations in New South Wales resulting in higher costs.

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    File URL: http://purl.umn.edu/12396
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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Review of Marketing and Agricultural Economics.

    Volume (Year): 62 (1994)
    Issue (Month): 01 (April)
    Pages:

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    Handle: RePEc:ags:remaae:12396

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    Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
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    Keywords: Environmental Economics and Policy;

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    1. McLeod, R.S. & Collins, D.J., 1993. "Beef Feedlot Margins: A Balance Between Feed Cost and Energy Required," 1993 Conference (37th), February 9-11, 1993, Sydney, Australia 147738, Australian Agricultural and Resource Economics Society.
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