Effects of Environmental Regulation and Urban Encroachment on California's Dairy Structure by ProQuest


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									Journal of Agricultural and Resource Economics 36(3):590–614
Copyright 2011 Western Agricultural Economics Association

      Effects of Environmental Regulation and Urban
      Encroachment on California’s Dairy Structure
                                               Stacy E. Sneeringer

       Environmental regulatory compliance costs are often cited as a factor in dairy location decisions,
       but few studies estimate the impacts of regulation in this sector. This article uses California dairy
       regulations to examine the pollution haven hypothesis in agriculture. Dairy industry regulation
       has varied regionally within the state, with the more strictly regulated Southern California
       region losing production and the more environmentally lenient Central Valley gaining production.
       Results show that even after controlling for population density and property values, regulation had
       significant negative effects on dairying in Southern California.

       Key words: dairy, differences-
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