Environmental Regulation and Location of Industrialised Agricultural Production in Europe

Abay Mulatu; Ada Wossink

doi:10.3368/le.90.3.509

Environmental Regulation and Location of Industrialised Agricultural Production in Europe

Abay Mulatu (Collaborator), Ada Wossink

Economics

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Abstract

This paper analyses 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 EU 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 (hotspots of hog waste).

Original language	English
Pages (from-to)	509-537
Number of pages	28
Journal	Land Economics
Volume	90
Issue number	3
DOIs	https://doi.org/10.3368/le.90.3.509
Publication status	Published - 1 Aug 2014

Keywords

pollution haven hypothesis; comparative advantage; environmental regulation; industry location; livestock industry.

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Cite this

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title = "Environmental Regulation and Location of Industrialised Agricultural Production in Europe",

abstract = "This paper analyses 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 EU 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 (hotspots of hog waste).",

keywords = "pollution haven hypothesis; comparative advantage; environmental regulation; industry location; livestock industry.",

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note = "Financial support from the Leverhulme Trust under grant RF-2011-550 is gratefully acknowledged.",

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N2 - This paper analyses 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 EU 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 (hotspots of hog waste).

AB - This paper analyses 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 EU 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 (hotspots of hog waste).

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EP - 537

JO - Land Economics

JF - Land Economics

IS - 3

ER -

Environmental Regulation and Location of Industrialised Agricultural Production in Europe

Abstract

Keywords

UN SDGs

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