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Social Costs Of Regulation Of Primary Industry: An Application To Animal Welfare Regulation Of The Victorian Pig Industry

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  • Wilcox, Christopher J.

Abstract

The effects of state government regulation of primary industry are modelled. An analytical framework is presented for estimating the costs of regulation in terms of changes in economic surplus. The model permits trade between regions of the total market. An illustrative application of the framework is applied to proposed animal welfare regulation of the Victorian pig industry. Some regulations that may provide large gains with regard to the welfare of farm animals involve only small social costs compared to the gross value of production of the industry. Conversely, other regulations that potentially confer only small gains in animal welfare impose large social costs. The distribution of these costs is important. In general, consumers lose, as do some producers. Other producers gain. In some cases, producers in aggregate gain from regulation. Major beneficiaries, such as advocates of animal welfare regulations, are likely to bear little of the cost of regulation.

Suggested Citation

  • Wilcox, Christopher J., 1989. "Social Costs Of Regulation Of Primary Industry: An Application To Animal Welfare Regulation Of The Victorian Pig Industry," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(3), pages 1-16, December.
    • Handle: RePEc:ags:ajaeau:22995
    DOI: 10.22004/ag.econ.22995
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    References listed on IDEAS

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    1. Brian S. Fisher, 1979. "The Demand For Meat — An Example Of An Incomplete Commodity Demand System," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 23(3), pages 220-230, December.
    2. Roger N. Rose, 1980. "Supply Shifts and Research Benefits: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(4), pages 834-837.
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    4. Harberger, Arnold C, 1971. "Three Basic Postulates for Applied Welfare Economics: An Interpretive Essay," Journal of Economic Literature, American Economic Association, vol. 9(3), pages 785-797, September.
    5. Richardson, Robert A. & O'Connor, J.G., 1978. "Changes in the Structure of Supply Response in the Australian Pig Industry," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 46(03), pages 1-18, December.
    6. Fisher, Brian S., 1979. "The Demand For Meat - An Example Of An Incomplete Commodity Demand System," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(3), pages 1-11, December.
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    2. Constantine, John H & Alston, Julian M & Smith, Vincent H, 1994. "Economic Impacts of the California One-Variety Cotton Law," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 951-974, October.

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