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Positive and Negative Agglomeration Externalities: Arbitration in the Pig Sector


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  • Sol�ne Larue
  • Jens Abildtrup
  • Bertrand Schmitt


Abstract In this study we analyse the determinants of pig production location in Denmark with a particular focus on positive and negative agglomeration externalities. Based on the theory of agglomeration and a discussion of the organization of the Danish pig production sector, a model of pig production is developed and tested empirically, applying the FG2SLS approach. Our results show that technical and pecuniary externalities have a positive effect on location, while the impact of environmental regulations is ambiguous. Indeed, the results show that urbanization economies are more important than the negative impact of land competition at the local level, but that neighbouring land competition implied by environmental regulations seems to have a negative effect on location. Externalités d'agglomérations positives et négatives: arbitrage dans le secteur de la production porcine Résumé Dans la présente étude, nous analysons les déterminants de la localisation de la production porcine au Danemark, en insistant tout particulièrement sur les externalités d'agglomération positives et négatives. Nous créons un modèle pour la production porcine, sur la base de la théorie de l'agglomération et de discussions sur l'organisation du secteur de la production porcine au Danemark, et nous le testons de façon empirique, en appliquant la méthode FG2SLS. Nos résultats indiquent que les externalités techniques et pécuniaires ont un effet positif sur la localisation , alors que l'impact des rėglementations environnementales est ambigu. Externalidades de la aglomeración positiva y negativa: arbitraje en el sector porcino Extracto En este estudio analizamos los determinantes de la ubicación de la producción de cerdos en Dinamarca con un enfoque particular en las externalidades de la aglomeración positiva y negativa. Basado en la teoría de la aglomeración y en una discusión sobre la organización del sector de la producción de cerdos danesa, se desarrolla y ensaya empíricamente un modelo de producción de cerdos, aplicando el planteamiento FG2SLS. Nuestros resultados muestran que las externalidades técnicas y pecuniarias tienen un efecto positivo sobre la ubicación, mientras que el impacto de las normativas medioambientales es ambiguo.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Spatial Economic Analysis.

Volume (Year): 6 (2011)
Issue (Month): 2 ()
Pages: 167-183

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Handle: RePEc:taf:specan:v:6:y:2011:i:2:p:167-183

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Keywords: Agglomeration externalities; spatial econometrics; environmental regulations; C13; R30; R15; Q11;

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Cited by:
  1. Abildtrup, Jens & Garcia, Serge & Stenger, Anne, 2013. "The effect of forest land use on the cost of drinking water supply: A spatial econometric analysis," Ecological Economics, Elsevier, vol. 92(C), pages 126-136.
  2. Abay Mulatu & Ada Wossink, 2012. "Environmental regulation and location of industrialised agricultural production in Europe," The School of Economics Discussion Paper Series 1215, Economics, The University of Manchester.
  3. Laroche Dupraz, C. & Postolle, A., 2013. "Food sovereignty and agricultural trade policy commitments: How much leeway do West African nations have?," Food Policy, Elsevier, vol. 38(C), pages 115-125.
  4. Carl Gaigné & Julie Le Gallo & Solène Larue & Bertrand Schmitt, 2011. "Does the regulation of manure land application work against agglomeration economies? Theory and evidence from the French hog sector," Working Papers SMART - LERECO 11-02, INRA UMR SMART.
  5. B. Fingleton & P. Cheshire & H. Garretsen & D. Igliori & J. Le Gallo & P. McCann & J. McCombie & V. Monastiriotis & B. Moore & M. Roberts, 2011. "We Move into Distinguished Company," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(2), pages 133-138.


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