• Environmental and Resource Economics Review
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• v.15 no.4
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• pp.761-782
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• 2006

Public concern about potential environmental risks of agricultural business for the livestock production and processing is increasing. However, due to differences in general industry structural characteristics, such as farm production and waste management practices, the effect of environmental policies may differ from species to species as well as across size categories. I hypothesize that additionally the Hog subsector may be more responsive to (or a greater driver of) a changing environmental policy environment than the beef cattle subsector. As a result, I expect to see more evidence of sensitivity in the environmental policy milieu from hog-operation stocking and location decisions than with the beef cattle industry. The written stringency may not effective, instead state's willingness to enforce has directed and regulated. However, in presence of rapid structural change, just like hog, industry location is affected by state regulation. The environmental compliance cost may be a small portion of industry total cost and fixed cost of beef industry makes for them to take into account environmental compliance for their decision location making. The special movements of flog industry have chance to minimize the cost of the operation and they willing to locate less stringent place.