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Modelling the Spatial Structure of Pig Production in Denmark

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Author Info

  • Larue, S.
  • Abildtrup, Jens
  • Schmitt, Bertrand

Abstract

In Denmark, the concentration of pig production is highest in the western part of the country. However, there may be even larger local differences in the number of pigs produced. In this study we analyze the determinants of the location of pig production in Denmark with particular focus on spatial externalities and the interaction between the location of pig production and upstream sector and slaughterhouses. It is the assumption that the location of slaughterhouses is influenced by the location of the primary producers, implying that this variable is endogenous, whereas the location of primary producers is independent of the location of slaughterhouses. This is due to the fact that transportation costs of pigs are paid by the cooperatives owning the slaughterhouses. This assumption is tested applying a spatial econometric model. The model is estimated for 1999 and 2004. Furthermore, the impact of negative environmental externalities of pig production on location is analyzed. The results show that spatial externalities have a positive effect on the location of pig production whereas environmental regulation has a negative effect on location.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44281.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:44281

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Related research

Keywords: Agglomeration; Externalities; Spatial Econometrics; Polluted Production; Livestock Production/Industries;

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References

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  1. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117 Elsevier.
  2. Bernard Fingleton & Julie Le Gallo, 2008. "Estimating spatial models with endogenous variables, a spatial lag and spatially dependent disturbances: Finite sample properties," Papers in Regional Science, Wiley Blackwell, vol. 87(3), pages 319-339, 08.
  3. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, December.
  4. Herriges, Joseph A. & Secchi, Silvia & Babcock, Bruce A., 2003. "Living with Hogs in Iowa: The Impact of Livestock Facilities on Rural Residential Property Values," Staff General Research Papers 10683, Iowa State University, Department of Economics.
  5. Ada Wossink & Frank Wefering, 2003. "Hot spots in animal agriculture, emerging federal environmental policies and the potential for efficiency and innovation offsets," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 2(3/4), pages 228-242.
  6. 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.
  7. Murat Isik, 2004. "Environmental Regulation and the Spatial Structure of the U.S. Dairy Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 949-962.
  8. 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.
  9. repec:jaa:jagape:v:30:y:1998:i:2:p:285-99 is not listed on IDEAS
  10. Rick Welsh & Bryan Hubbell & Chantal Line Carpentier, 2003. "Agro-food system restructuring and the geographic concentration of US swine production," Environment and Planning A, Pion Ltd, London, vol. 35(2), pages 215-229, February.
  11. Hubbell, Bryan J. & Welsh, Rick, 1998. "An Examination Of Trends In Geographic Concentration In U.S. Hog Production, 1974-96," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(02), December.
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Cited by:
  1. Cheng, Mei-luan & Gomez, Miguel I. & Bills, Nelson L., 2011. "Urban Agglomeration Economies in the U.S. Greenhouse and Nursery Production," Working Papers 126611, Cornell University, Department of Applied Economics and Management.
  2. Latruffe, Laure & Desjeux, Yann & Fogarasi, Jozsef & Bakucs, Lajos Zoltan & Ferto, Imre, 2010. "Technical efficiency and environmental pressures of pig farms in Hungary," 120th Seminar, September 2-4, 2010, Chania, Crete 109385, European Association of Agricultural Economists.

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