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The Price of Humane: Impacts of Animal Confinement Laws on Consumers and Pork Supply Chain

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  • Lwin, Wuit Yi
  • Arita, Shawn
  • Cooper, Joseph
  • Keller, Andrew
  • Steinbach, Sandro

Abstract

California’s Proposition 12 imposed retail-level animal-confinement requirements (ACL) on pork sold in the state beginning in January 2024. We combine two empirical strategies to estimate the impacts of Proposition 12 along the pork supply chain and consumers. First, we estimate a linear-approximate Almost Ideal Demand System (LA-AIDS) using pre-policy data to recover the full demand elasticity matrix and derive welfare measures. Second, we employ a vertical supply-chain decomposition that links wholesale ACL premiums from the USDA Livestock Mandatory Reporting (LMR) database to retail scanner data, allowing us to estimate the pass-through rate and quantify the economic burden borne at each stage of the supply chain.

Suggested Citation

  • Lwin, Wuit Yi & Arita, Shawn & Cooper, Joseph & Keller, Andrew & Steinbach, Sandro, 2026. "The Price of Humane: Impacts of Animal Confinement Laws on Consumers and Pork Supply Chain," 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri 404390, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea26:404390
    DOI: 10.22004/ag.econ.404390
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