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The Siting of Livestock Facilities and Environmental Regulations

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  • Alfons Weersink
  • Christin Eveland

Abstract

The significant variation in the stringency of environmental regulations across Ontario municipalities in the late 1990s created the possibility of pollution havens where expanding livestock operations would locate in those municipalities with the lowest regulatory compliance costs. Using actual building permit data rather than aggregate regional production numbers, the study examined the factors affecting spatial changes. Instead of locating to reduce environmental compliance costs as suggested by the pollution haven hypothesis, barns are being built largely where the livestock sector is concentrated suggesting the existence of agglomeration economies. The result suggests that the normalization of standards across the province through the new Nutrient Management Act will not significantly influence the location decisions of expanding or new livestock facilities which are largely determined by economic factors associated with livestock infrastructure support. L'importante variation de sévérité des règlements environnementaux dans les municipalités de l'Ontario vers la fin des années 1990 a créé la possibilité de refuges pour pollueurs: les fermes d'élevage en expansion allaient s'installer dans les municipalités où les coûts de conformité aux règlements étaient les plus faibles. À l'aide de données sur les permis de construire plutôt que de données agrégées sur la production régionale, la présente étude a examiné les facteurs qui influaient sur les changements spatiaux. Au lieu de s'installer là où les coûts de conformité aux règlements sont faibles comme le laisse supposer l'hypothèse des refuges pour pollueurs, les entreprises choisissent de s'installer là où le secteur de l'élevage est concentré, ce qui laisse supposer l'existence d'économies d'agglomération. Les résultats semblent indiquer que l'uniformisation des normes à l'échelle provinciale en vertu de la Loi sur la gestion des éléments nutritifs n'aura pas d'influence significative sur le choix des endroits où seront construits les bâtiments des exploitations en expansion ou des nouvelles exploitations puisque ce choix est en grande partie motivé par des facteurs économiques liés au soutien à l'infrastructure de l'élevage.

Suggested Citation

  • 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, March.
  • Handle: RePEc:bla:canjag:v:54:y:2006:i:1:p:159-173
    DOI: 10.1111/j.1744-7976.2006.00043.x
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    1. 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.
    2. Fertő, Imre & Csonka, Arnold, 2017. "Válság- és agglomerációs hatások a magyarországi sertéstartásban [Crisis and agglomeration in Hungary s pig production]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 105-122.
    3. Predrag Rajsic & Glenn Fox, 2016. "Environmental Externalities, Comparative Advantage, and the Location of Production: An Application to the Canadian Dairy Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(2), pages 311-337, June.
    4. Csonka, Arnold & Fertő, Imre, 2017. "Does Crisis Have Impact on the Agglomeration in the Hungarian Pork Sector?," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261418, European Association of Agricultural Economists.
    5. Larue, Solene & Abildtrup, Jens & Schmitt, Bertrand, 2008. "Modelling the Spatial Structure of Pig Production in Denmark," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44281, European Association of Agricultural Economists.
    6. Luljeta Hajderllari & Kostas Karantininis & Ole Bonnichsen, 2012. "Danish Farmers and Investors: An analysis of reasons and motivations for increasing cross-border agricultural activities in Central and Eastern European countries," IFRO Working Paper 2012/10, University of Copenhagen, Department of Food and Resource Economics.
    7. Ifft, Jennifer, 2015. "The Impact of Nutrient Management Regulations on New York Farmland Values," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205796, Agricultural and Applied Economics Association.
    8. Gallego, Aurea & Calafat, Consuelo & Segura, Marina & Quintanilla, Israel, 2019. "Land planning and risk assessment for livestock production based on an outranking approach and GIS," Land Use Policy, Elsevier, vol. 83(C), pages 606-621.
    9. Azzeddine Azzam & Gibson Nene & Karina Schoengold, 2015. "Hog Industry Structure and the Stringency of Environmental Regulation," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(3), pages 333-358, September.
    10. Csonka, Arnold & Fertő, Imre, 2016. "Crisis and Agglomeration in the Hungarian Hog Sector," 149th Seminar, October 27-28, 2016, Rennes, France 244787, European Association of Agricultural Economists.
    11. Abay Mulatu & Ada Wossink, 2014. "Environmental Regulation and Location of Industrialized Agricultural Production in Europe," Land Economics, University of Wisconsin Press, vol. 90(3), pages 509-537.

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