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The Relationship between Contracting and Livestock Waste Pollution

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  • Tomislav Vukina

Abstract

This paper investigates factors and mechanisms that influence the relationship between contracting and animal waste pollution. The questions raised are whether contracting worsens livestock waste management problems and how to apportion the burden of regulation between the contracting parties in a socially optimal way. The paper shows that the potential linkages between contracting and animal waste depend on scale, specialization, and concentration of animal units, as well as on division of inputs and contract settlement rules. The long-run apportioning of an increase in costs of environmental compliance depends on the integrator's market power for grower services.

Suggested Citation

  • Tomislav Vukina, 2003. "The Relationship between Contracting and Livestock Waste Pollution," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 66-88.
  • Handle: RePEc:oup:revage:v:25:y:2003:i:1:p:66-88.
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    File URL: http://hdl.handle.net/10.1111/1467-9353.00046
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    References listed on IDEAS

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    1. Tsoulouhas, Theofanis, 1999. "Do tournaments solve the two-sided moral hazard problem?," Journal of Economic Behavior & Organization, Elsevier, vol. 40(3), pages 275-294, November.
    2. Roka, Fritz M. & Hoag, Dana L., 1996. "Manure Value And Liveweight Swine Decisions," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 0(Number 1), pages 1-10, July.
    3. Philippe Bontems & Pierre Dubois & Tomislav Vukina, 2004. "Optimal Regulation of Private Production Contracts with Environmental Externalities," Journal of Regulatory Economics, Springer, vol. 26(3), pages 287-301, August.
    4. Satheesh V. Aradhyula & Matthew T. Holt, 1988. "Risk Behavior and Rational Expectations in the U.S. Broiler Market," Food and Agricultural Policy Research Institute (FAPRI) Publications 88-wp33, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    5. Theofanis Tsoulouhas & Tomislav Vukina, 1999. "Integrator Contracts with Many Agents and Bankruptcy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 61-74.
    6. Dieter Balkenborg, 2001. "How Liable Should a Lender Be? The Case of Judgment-Proof Firms and Environmental Risk: Comment," American Economic Review, American Economic Association, vol. 91(3), pages 731-738, June.
    7. Levinthal, Daniel, 1988. "A survey of agency models of organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 9(2), pages 153-185, March.
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    Cited by:

    1. Liu Deming, 2012. "Proposing the Bonding Requirements for Investment in Africa: A Tripartite Solution for the Environmental Protection," The Law and Development Review, De Gruyter, vol. 5(2), pages 128-154, December.
    2. 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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