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Why Do Livestock Farmers Participate in Voluntary Environmental Programs? An Empirical Study of the Michigan Agriculture Environmental Assurance Program (MAEAP)

  • Chantorn, Charapon
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    Previous studies have identified regulatory preemption and differentiation as two main motives for participation in voluntary environmental programs (VEPs). This research examines the motivations of livestock farmers to participate in the Michigan Agricultural Environmental Assurance Program (MAEAP). It employs a signaling model of interaction between the regulator and livestock farmers under imperfect information to analyze the potential equilibria of participation decisions in VEPs. Data from a survey of livestock farmers in Michigan is analyzed to test hypotheses regarding the realized equilibrium in MAEAP participation. The results suggest that livestock farmers who are interested in regulatory preemption are more likely to be MAEAP-verified while those who are interested in differentiation are less likely to be verified at the time of the survey. Consistent with the model predictions under the regulatory preemption equilibrium, MAEAP-certified farms also perceived more stringent enforcement effort by the regulators.

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    File URL: http://purl.umn.edu/151404
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    Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Graduate Research Masters Degree Plan B Papers with number 151404.

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    Date of creation: 2013
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    Handle: RePEc:ags:midagr:151404
    Contact details of provider: Postal: Justin S. Morrill Hall of Agriculture, 446 West Circle Dr., Rm 202, East Lansing, MI 48824-1039
    Phone: (517) 355-4563
    Fax: (517) 432-1800
    Web page: http://www.aec.msu.edu/agecon/
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    1. Henriques, Irene & Sadorsky, Perry, 1996. "The Determinants of an Environmentally Responsive Firm: An Empirical Approach," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 381-395, May.
    2. Lyon, Thomas P. & Maxwell, John W., 2003. "Self-regulation, taxation and public voluntary environmental agreements," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1453-1486, August.
    3. Stefanie Kirchhoff, 2000. "Green Business and Blue Angels," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 15(4), pages 403-420, April.
    4. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, June.
    5. Dasgupta, Susmita & Hettige, Hemamala & Wheeler, David, 2000. "What Improves Environmental Compliance? Evidence from Mexican Industry," Journal of Environmental Economics and Management, Elsevier, vol. 39(1), pages 39-66, January.
    6. J Videras & A Alberini, 2000. "The appeal of voluntary environmental programs: which firms participate and why?," Contemporary Economic Policy, Western Economic Association International, vol. 18(4), pages 449-460, October.
    7. Segerson, Kathleen & Miceli, Thomas J., 1998. "Voluntary Environmental Agreements: Good or Bad News for Environmental Protection?," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 109-130, September.
    8. Khanna, Madhu & Damon, Lisa A., 1999. "EPA's Voluntary 33/50 Program: Impact on Toxic Releases and Economic Performance of Firms," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 1-25, January.
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