RT Journal Article
SR Electronic
T1 Environmental Regulation and Location of Industrialized Agricultural Production in Europe
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 509
OP 537
DO 10.3368/le.90.3.509
VO 90
IS 3
A1 Abay Mulatu
A1 Ada Wossink
YR 2014
UL http://le.uwpress.org/content/90/3/509.abstract
AB This paper analyzes empirically the extent to which environmental regulation influences production location in the pig industry. The analysis is based on a general empirical location model that captures interactions between region and sector characteristics in determining production location, and data on pig production in 43 European regions. We find that while environmental regulation may not have a measurable effect on the E.U. pig industry location per se, it is a strong influence on the sectoral composition of the industry. Relatively highly polluting sectors of the pig industry are attracted to relatively lax jurisdictions, which become pollution havens (hot spots of hog waste). (JEL Q58, R38)