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Costs of a Practice-based Air Quality Regulation: Dairy Farms in the San Joaquin Valley

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  • Wei Zhang

Abstract

Facing the difficulty of accurately measuring pollution from agriculture, economists have recommended regulatory approaches using proxies such as management practices to reduce agricultural pollution. Using farm-level cost data on a panel of dairy farms, I estimate the effects of a practice-based air quality regulation for dairy farms in the San Joaquin Valley in California. As opposed to ex ante analyses, my econometric results indicate that the air quality regulation has not significantly affected the total costs of milk production. Estimates also suggest that the regulation might have differential effects on different elements of costs. I support the econometric findings with evidence on how dairy farms comply with the regulation. Calculated adoption rates of different pollution-mitigation practices using administrative data reveal that dairy farms have mainly adopted labor-intensive practices to comply with the regulation.

Suggested Citation

  • Wei Zhang, 2018. "Costs of a Practice-based Air Quality Regulation: Dairy Farms in the San Joaquin Valley," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(3), pages 762-785.
    • Handle: RePEc:oup:ajagec:v:100:y:2018:i:3:p:762-785.
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    File URL: http://hdl.handle.net/10.1093/ajae/aax085
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    Citations

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    Cited by:

    1. Richard T. Melstrom, 2021. "The Effect of Land Use Restrictions Protecting Endangered Species on Agricultural Land Values," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 162-184, January.
    2. Pengfei Liu & Yu Wang & Wei Zhang, 2023. "The influence of the Environmental Quality Incentives Program on local water quality," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(1), pages 27-51, January.
    3. Shuai Chen & Chen Ji & Songqing Jin, 2022. "Costs of an environmental regulation in livestock farming: Evidence from pig production in rural China," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 541-563, June.
    4. Lee, Hanbin & Sexton, Richard J. & Sumner, Daniel A., 2022. "Government Restrictions on Food Available to Consumers: Economics of Regulations that Limit Farming Practices for Products Sold within Jurisdictions, with Application to California’s 2022 Pork Rules," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322438, Agricultural and Applied Economics Association.
    5. Wang, Yuhan & Qin, Zhiran & Sexton, Richard J., 2023. "Impacts of Subnational Regulation of Production Practices for Foods Consumed within the Jurisdiction: California’s Proposition 12," 2023 Annual Meeting, July 23-25, Washington D.C. 335949, Agricultural and Applied Economics Association.

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