Abstract
Using a spatial econometric approach and national prefecture-level hog inventory data, this paper analyzes the extent to which environmental regulation policies influence hog production in China, and obtained the following research results: 1) During the 12th Five-Year Plan period, environmental regulation policies will significantly reduce the output of the hog industry in highly regulated areas. 2) The specific policy commands from the central government targeting on livestock sector and a high share of agriculture in the economy will increase the stringency of the environmental regulation policies on hog production. 3) The COD emission reduction requirements also have a significant negative impact on major hog farming provinces, the results obtained from the main model are verified again. The results highlight the importance of a more flexible environmental decentralization regime in China and other developing countries for future reforms.
Highlights
Whether strict environment regulation policy will cause negative impacts on production is a critical question in environmental economics and public policy
For the other provinces, we found that the effect of environmental regulation and the interaction term were insignificant in both FYPs
In Europe, hog production is concentrated in a few countries, with over two-thirds of the total inventory found in Germany, Spain, Poland, France, Denmark, and the Netherlands (Mulatu and Wossink, 2014)
Summary
Whether strict environment regulation policy will cause negative impacts on production is a critical question in environmental economics and public policy. Environmental Regulations of Hog Production operations usually adopt more environment-friendly practices, their output can bring massive pressure on the environment (Pan et al, 2019) These large facilities that feed a large number of animals in limited areas generate an excessive amount of pollutants that potentially threaten the local water conditions. Given the fundamental role of pork in Chinese society and the urgency to address pollution caused by hog production, our study is important for understanding the role of environmental regulation on hog production and to inform future policymaking in China and in the small-scale animal production in other developing countries.
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