Spatial dynamics of the livestock sector in the United States: do environmental regulations matter?

This study examines the factors affecting state annual share of national inventory for each of the hog, dairy, and fed-cattle sectors using data from the 48 contiguous states for 1976 to 2000. The paper develops a state-specific, time-series environmental stringency measure and introduces instrument...

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Bibliographic Details
Published in:Journal of agricultural and resource economics 2005-04, Vol.30 (1), p.45-68
Main Authors: Herath, D, Weersink, A, Carpentier, C.L
Format: Article
Language:English
Subjects:
Agglomeration
agricultural law
Agriculture
Bias
Cattle
Economic regulation
environmental law
environmental policy
environmental protection
Environmental regulation
environmental regulation stringency
Environmental regulations
environmental stringency
Farm economics
fixed-effects model
Geographic regions
geographical variation
Hogs
Hypotheses
Industrial regulation
instrumental variable
Inventories
Livestock
livestock and meat industry
Livestock farms
livestock production
livestock sector
location choice
panel data analysis
Pollution
pollution havens
Regions
spatial distribution
Sustainable agriculture
swine
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Summary:This study examines the factors affecting state annual share of national inventory for each of the hog, dairy, and fed-cattle sectors using data from the 48 contiguous states for 1976 to 2000. The paper develops a state-specific, time-series environmental stringency measure and introduces instrumental variables to control for the possible endogeneity bias between livestock production decisions and regulatory stringency. The results indicate that differences in the severity of environmental regulations facing livestock producers have had a significant influence on production decisions in the dairy, and particularly the hog sector.
ISSN:1068-5502
2327-8285
DOI:10.22004/ag.econ.30783