THE LOCATIONAL DETERMINANTS OF LARGE LIVESTOCK OPERATIONS: EVIDENCE FROM THE U.S. HOG, DAIRY, AND FED-CATTLE SECTORS

Abstract

Although differences in environmental stringency have been given as a reason for the growth of the livestock sectors, particularly hogs, in non-traditional production regions, there is little empirical evidence to support the existence of pollution havens. This paper uses the number of large farm as the dependent variable instead of state-level inventory data and also develops an environmental regulatory stringency measure for each state over approximately a decade and carries out a rigorous panel data analysis. After controlling for all other important location determinants, we find that stringent environmental regulations are one of the most important repellents of large hog farms in the United States.Livestock Production/Industries,