Environmental Regulations and Livestock Production Levels: What is the Direction of Causality?
Fundamental to the assertion that environmental regulatory standards are strategically set by decentralized authorities and consequently firms respond to spatial differences in regulatory standards is the underline causal relationship. Establishing the cause-effect association between regulatory standard setting and industry response is essential to justify the existence of the pollution haven and the potential for a race to the bottom. In this paper using 25 years data of the livestock production intensities for hog, dairy and fed cattle sectors and environmental regulatory stringency measure from 1975 to 2000 for 48 contiguous states we explore whether the direction of causality as suggested by race to the bottom hypothesis is in fact supported by the empirical evidence and hence the potential for existence of pollution haven is real in the U.S. livestock production sector. The results in general support the existence of pollution havens and potential for a race to the bottom at the regional level. There were no convincing evidences supporting the reserve causality that the "industry driving policy" hypothesis. Across the different livestock types, dairy sector provided conclusive evidence that in the regions with substantial growth of dairy inventories, there are strong evidences for a race to the bottom.
|Date of creation:||2006|
|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
References listed on IDEAS
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.:
- Robert Hoffmann & Lee Chew Ging & Bala Ramasamy & Matthew Yeung, 2004.
"FDI and Pollution: A Granger Causality Test using Panel Data,"
CEABuR Working Papers
2, Centre for Europe-Asia Business Research.
- Robert Hoffmann & Chew-Ging Lee & Bala Ramasamy & Matthew Yeung, 2005. "FDI and pollution: a granger causality test using panel data," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(3), pages 311-317.
- Daniel L. Millimet & John A. List, 2003.
"A Natural Experiment on the 'Race to the Bottom' Hypothesis: Testing for Stochastic Dominance in Temporal Pollution Trends,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 65(4), pages 395-420, 09.
- John List & Daniel Millimet, 2003. "A Natural Experiment on the 'Race to the Bottom' Hypothesis: Testing for Stochastic Dominance in Temporal Pollution Trends," Natural Field Experiments 00505, The Field Experiments Website.
- Eskeland, Gunnar S. & Harrison, Ann E., 2003.
"Moving to greener pastures? Multinationals and the pollution haven hypothesis,"
Journal of Development Economics,
Elsevier, vol. 70(1), pages 1-23, February.
- Gunnar A. Eskeland & Ann E. Harrison, 2002. "Moving to Greener Pastures? Multinationals and the Pollution Haven Hypothesis," NBER Working Papers 8888, National Bureau of Economic Research, Inc.
- Eskeland, Gunnar S.*Harrison, Ann E., 1997. "Moving to greener pastures : multinationals and the pollution-haven hypothesis," Policy Research Working Paper Series 1744, The World Bank.
- 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.
- Martin, Laura L. & Zering, Kelly D., 1997. "Relationships Between Industrialized Agriculture And Environmental Consequences: The Case Of Vertical Coordination In Broilers And Hogs," Staff Papers 11551, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- 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.
- Daniel A. Summer & Christopher A. Wolf, 2002. "Diversification, Vertical Integration, and the Regional Pattern of Dairy Farm Size," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 442-457.
- 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.
- 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.
- 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.
- Martin, Laura L. & Zering, Kelly D., 1997. "Relationships Between Industrialized Agriculture and Environmental Consequences: The Case of Vertical Coordination in Broilers and Hogs," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 29(01), pages 45-56, July.
- repec:dau:papers:123456789/6159 is not listed on IDEAS
- Randy Becker & Vernon Henderson, 2000. "Effects of Air Quality Regulations on Polluting Industries," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 379-421, April.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea06:21482. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.