Does Regulation of Manure Land Application Work Against Agglomeration Economies? Theory and Evidence from the French Hog Sector
研究法国养猪业中粪肥土地施用限制是否削弱了集聚带来的生产率提升,发现限制并未促进分散,反而可能通过推动粪污处理系统采用而增强集聚经济。
We examine whether the restrictions on manure land application weaken productivity gains arising from agglomeration in the hog sector. By developing a spatial model of production, we show that while regulating the manure application rate promotes dispersion ceteris paribus , it also prompts farmers to adopt systems of manure treatment that favor the agglomeration of hog production. We estimate a reduced form of the model with a spatial HAC procedure from French data. Our results suggest that land limitations induced by the restrictions on manure application do not favor the dispersion of hog production, and may boost agglomeration economies related to non‐market spatial externalities.