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Spatial Dynamics Of The Livestock Sector In The United States: Do Environmental Regulations Matter?

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  • Herath, Deepananda P.B.
  • Weersink, Alfons
  • Carpentier, Chantal Line

Abstract

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

Suggested Citation

  • Herath, Deepananda P.B. & Weersink, Alfons & Carpentier, Chantal Line, 2003. "Spatial Dynamics Of The Livestock Sector In The United States: Do Environmental Regulations Matter?," 2003 Annual meeting, July 27-30, Montreal, Canada 22059, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea03:22059
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    Cited by:

    1. Marc O. Ribaudo & Robert C. Johansson, 2007. "Nutrient Management Use at the Rural-Urban Fringe: Does Demand for Environmental Quality Play a Role?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(4), pages 689-699.
    2. Sneeringer Stacy E, 2009. "Effects of Environmental Regulation on Economic Activity and Pollution in Commercial Agriculture," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-35, July.
    3. Boonsaeng, Tullaya & Wohlgenant, Michael K., 2006. "The Demand for Livestock by the U.S. Meat Processing Industry," 2006 Annual meeting, July 23-26, Long Beach, CA 21120, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. 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.
    5. Malcolm, Scott A. & Aillery, Marcel P. & Weinberg, Marca, 2009. "Ethanol and a Changing Agricultural Landscape," Economic Research Report 55671, United States Department of Agriculture, Economic Research Service.
    6. Azzeddine Azzam & Gibson Nene & Karina Schoengold, 2015. "Hog Industry Structure and the Stringency of Environmental Regulation," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(3), pages 333-358, September.
    7. Syeda Khaleda & Yuji Murayama, 2013. "Geographic Concentration and Development Potential of Poultry Microenterprises and Value Chain: A Study Based on Suitable Sites in Gazipur, Bangladesh," Social Sciences, MDPI, Open Access Journal, vol. 2(3), pages 1-21, August.
    8. Weersink, Alfons & Raymond, Mark, 2007. "Environmental regulations impact on agricultural spills and citizen complaints," Ecological Economics, Elsevier, vol. 60(3), pages 654-660, January.
    9. Zhang, Wei, 2015. "Costs of a Practice-Based Air Quality Regulation: Dairy Farms in the San Joaquin Valley," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205304, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    10. Hadrich, Joleen C. & Wolf, Christopher A. & Lupi, Frank, 2008. "Manure Handling System Attributes Impact on Manure Management Investment Decisions: A Random Utility Model Approach," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6532, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Chad Lawley & Hartley Furtan, 2008. "The Political Trade-Off Between Environmental Stringency And Economic Development In Rural America," Journal of Regional Science, Wiley Blackwell, vol. 48(3), pages 547-566.
    12. Nene, Gibson & Azzam, Azzeddine M. & Schoengold, Karina, 2009. "Environmental Regulations and the Structure of U.S. Hog Farms," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49395, Agricultural and Applied Economics Association.
    13. Sneeringer, Stacy E. & Hogle, Regina, 2008. "Variation in Environmental Regulations in California and Effects on Dairy Location," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), October.
    14. Mosnier, Claire & Wieck, Christine, 2010. "Determinants of spatial dynamics of dairy production: a review," Discussion Papers 162896, University of Bonn, Institute for Food and Resource Economics.
    15. Fertő, Imre & Csonka, Arnold, 2017. "Válság- és agglomerációs hatások a magyarországi sertéstartásban
      [Crisis and agglomeration in Hungary s pig production]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 105-122.
    16. 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, March.

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