Does Regulation of Manure Land Application Work Against Agglomeration Economies? Theory and Evidence from the French Hog Sector

We examine whether the restrictions on manure land application weaken productivity gains arising from agglomeration in the hog sector. By developing a spatial model of production, we show that while regulating the manure application rate promotes dispersion ceteris paribus, it also prompts farmers t...

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Bibliographic Details
Published in:American journal of agricultural economics 2012-01, Vol.94 (1), p.116-132
Main Authors: Gaigné, Carl, Le Gallo, Julie, Larue, Solène, Schmitt, Bertrand
Format: Article
Language:English
Subjects:
Agglomeration
Agglomeration economies
Agricultural economics
Agricultural land
Agricultural production
Agricultural sciences
Agriculture, economy and politics
Animal manure management
Cantons
Commercial production
Crops
Economic geography
Economic models
Farming
Farmyard manure
Fertilizers
France
Hog production
Hogs
Land availability
Life Sciences
Livestock industry
Manure
Manure application regulation
Manures
Organic farming
Pigs
Productivity
Spatial econometrics
Studies
Waste management
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Summary:We examine whether the restrictions on manure land application weaken productivity gains arising from agglomeration in the hog sector. By developing a spatial model of production, we show that while regulating the manure application rate promotes dispersion ceteris paribus, it also prompts farmers to adopt systems of manure treatment that favor the agglomeration of hog production. We estimate a reduced form of the model with a spatial HAC procedure from French data. Our results suggest that land limitations induced by the restrictions on manure application do not favor the dispersion of hog production, and may boost agglomeration economies related to non-market spatial externalities.
ISSN:0002-9092
1467-8276
DOI:10.1093/ajae/aar121