Spatial Dynamics Of The Livestock Sector In The United States: Do Environmental Regulations Matter?
The US hog and dairy sectors are increasingly shifting production toward western states away from more traditional production regions in the east. In contrast, production levels in the fed-cattle sector have increased over the last three decades only in the three main producing states. One possible reason for the shifts in production areas is that a state may introduce or keep less stringent environmental regulations relative to neighboring states as a means to cope with inter-jurisdictional capital competition. Such differences might create "pollution havens". This study examines the factors affecting the annual growth rate in inventory for each of the hog, dairy and fed-cattle sectors using data from 48 states for 1975 to 2000. The results indicate that environmental regulatory stringency is generally not as important as other economic variables in the location choices of livestock producers. In the two sectors (hog and dairy) where significant regional production shifts have occurred, major drivers appear to be relative prices and business climate. Inventories are rising in more remote areas and regulatory stringency appears to increase ex post as a response to increasing livestock production levels. Thus, with the exception of the fed-cattle sector, regional differences in environmental regulations appear not to have a significant influence on livestock production decisions and consequently regional comparative advantage
|Date of creation:||2003|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Edward Osei & P. G. Lakshminarayan, 1996. "Determinants of Dairy Farm Location. Livestock Series Report 7," Center for Agricultural and Rural Development (CARD) Publications 96-wp174, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Eberts, Randall W. & McMillen, Daniel P., 1999.
"Agglomeration economies and urban public infrastructure,"
Handbook of Regional and Urban Economics,in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 38, pages 1455-1495
- Randall W. Eberts & Daniel P. McMillen, 1999. "Agglomeration Economies and Urban Public Infrastructure," Book chapters authored by Upjohn Institute researchers,in: Paul Cheshire & Edwin S. Mills (ed.), handbook or Regional and Urban Economics, volume 3, pages 1455-1495 W.E. Upjohn Institute for Employment Research.
- Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
- Virginia D. McConnell & Robert M. Schwab, 1990. "The Impact of Environmental Regulation on Industry Location Decisions: The Motor Vehicle Industry," Land Economics, University of Wisconsin Press, vol. 66(1), pages 67-81.
- Timothy J. Bartik, 2002. "The Effects of Environmental Regulation on Business Location in the United States," Book chapters authored by Upjohn Institute researchers,in: Wayne B. Gray (ed.), Economic Costs and Consequences of Environmental Regulation, pages 129-151 W.E. Upjohn Institute for Employment Research.
- Coughlin, Cletus C & Terza, Joseph V & Arromdee, Vachira, 1991. "State Characteristics and the Location of Foreign Direct Investment within the United States," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 675-683, November.
- 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.
- Gollehon, Noel R. & Caswell, Margriet & Ribaudo, Marc & Kellogg, Robert L. & Lander, Charles & Letson, David, 2000. "Confined Animal Production And Manure Nutrients," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36382, Western Agricultural Economics Association.
- Gollehon, Noel R. & Caswell, Margriet & Ribaudo, Marc & Kellogg, Robert L. & Lander, Charles & Letson, David, 2001. "Confined Animal Production And Manure Nutrients," Agricultural Information Bulletins 33763, United States Department of Agriculture, Economic Research Service.
- Levinson, Arik, 1996. "Environmental regulations and manufacturers' location choices: Evidence from the Census of Manufactures," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 5-29, October.
- List, John A. & Co, Catherine Y., 2000. "The Effects of Environmental Regulations on Foreign Direct Investment," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 1-20, July.
- Catherine Co & John List, 2000. "The Effects of Environmental Regulations on Foreign Direct Investment," Natural Field Experiments 00521, The Field Experiments Website.
- Fredriksson, Per G. & Millimet, Daniel L., 2002. "Strategic Interaction and the Determination of Environmental Policy across U.S. States," Journal of Urban Economics, Elsevier, vol. 51(1), pages 101-122, January.
- Park, Dooho & Seidl, Andrew & Davies, Stephen, 2002. "Environmental Policy and Industry Location: The Case of the U.S. Livestock Industry," The Review of Regional Studies, Southern Regional Science Association, vol. 32(2), pages 293-307, Summer/Fa. Full references (including those not matched with items on IDEAS)