Essays on Industrial Organization and Environmental Economics

This dissertation studies environmental regulation issues in the hog production industry as well as forces behind the reorganization of the industry during the past two decades. Federal and State-level environmental regulations imposed on U.S. hog production during the year 2003 are examined in Chapter 1. Based on the number of regulations passed by the Federal government and states, the 2003 regulatory index is constructed. The regulatory stringency index suggests that state-level regulations vary across states and have increased over the years. In addition, state-level regulations are more stringent than federal regulations. Chapter 2 develops an empirically implementable theoretical model which allows us to investigate the long-run effects of environmental regulations on the U.S. hog industry. Hog feeding operations (HFOs) are divided into large feeding operations (LHFOs) and small feeding operations (SHFOs). The impact of the presence of a large number of LHFOs on the entry and exit of CHFOs is also examined. Results of this study suggest that: Increased state-level regulation stringency significantly lowers the output of SHFOs; increased state-level regulation stringency significantly lowers the output of LHFOs; increased state-level regulation stringency significantly lowers the number of SHFOs; SHFO output rises significantly in states that have a greater number of LHFOs; LHFO output rises significantly in states that have a greater number of LHFOs; the number of SHFOs significantly increases in states that have a greater numbers of LHFOs; regulation increases the average SHFO size; and regulation decreases the average LHFO size. Chapter 3 examines the importance of input availability, market attractiveness, agglomeration economies and environmental regulations on the reorganization of U.S. hog production for a panel of 22 U.S. hog producing states which include, Northern states, Southern states and Midwest states for the period 1994-2006. Results from this study suggest that: Hog production in a state is positively affected by hog production in a nearby state, confirming the presence of agglomeration economies; Environmental regulations and high corn price have negative effects on state-level U.S. hog production; High hog prices, and favorable labor cost, and land values attract hog production; and transportation cost has no effect on hog production. Advisors: Azzeddine Azzam and Karina Schoengold

Variation of Environmental Regulation Stringency Among the Top Ten U.S. Hog Producing States

The U.S. hog industry, once primarily made up of small owner-operated crop-hog farms, has become dominated by large specialized operations characterized by low costs and improved technologies in livestock management. Such changes have triggered concerns over the dangers large Hog Feeding Operations (HFOs) are likely to pose to the environment. In 2007, the top ten states accounted for more than 85 percent of total U.S. hog production (Iowa (IA), North Carolina (NC), Minnesota (MN), Illinois (IL), Nebraska (NE), Indiana (IN), Missouri (MO), Oklahoma (OK), Ohio (OH), and Kansas (KS)). With such domination on production, these states are often the subject of environmental debate relating to hog production. When farmers are required to incorporate environmental measures in hog production, their costs of production increase. Metcalfe (2001) found that small HFOs have found it difficult to cope with such costs and many have exited the industry, while large operations have not been affected at the same level. Due to the variation of environmental regulations among states, other operations moved to states with lax regulations (e.g. NC prior to the late 1990s). Such regulations appear to have played a major role in shaping the structure of the hog industry.

The Impact of Green Supply Chain Practices on Supply Chain Performance

Supply Chain Management (SCM) has become a critical factor to sustain organization’s competitive advantages. In this regard, many firms and researchers have attempted to find out factors that affect either positively or negatively on SCM. Recently, Green Supply Chain Management (GSCM) has been receiving the spotlight in many studies. Social and political concerns about the environment in Korea emerged in the early 1990s when Korean government established new environmental regulations in order to implement environmental management throughout the entire supply chain. The Korean government established national GSCM strategies. However, there has been minimal research on measuring GSCM performance among Korean enterprises. It is critical to conduct the research on the relationship between GSCM practices and supply chain performance among Korean firms. In this research, the relationship among Korean enterprises will be empirically tested. The supply chain performance measurement system includes three dimensions: resource, output, and flexibility.

STATE REGISTRATION AND LICENSING REGULATIONS: A NEW PROGRAM (OHIO)

We enacted a bill in Ohio this year, Senate Bill 445, that has to do with the application of pesticides. It is a very wide bill as you would normally look at it with most of the meat going to come from the regulations that are presently being written into it. In other words, the framework was developed and accepted by the two houses in our state legislature and empowered the Director of Agriculture to establish the regulations or the so-called teeth to this bill. The governor signed the bill in June and it became effective in September. The committees as of this time are meeting to develop philosophies and regulations that will be promulgated and brought into hearings and sifted through, and eventually, with a target date of December of this year, (1970), brought to the Director of Agriculture's office for acceptance. There is a committee established for rodent and bird control which is very well represented by our industry here in Ohio. John Beck (Rose Exterminator Company) is the chairman of the committee, William B. Jackson (Bowling Green State University) and Robert Yaeger (Cincinnati) are also on the committee. The important feature of this new law, in terms of pest control operators, is the examinations that will be required. We operators and our service people will both be tested and licensed, if sufficient proficiency is demonstrated on the tests. For your information they use a little different terminology in the bill than we in the industry normally use. We think of an applicator in the industry as service people. In the bill an applicator is defined as an operator. Therefore in reading the law the word operator means the man who does the job, the service man. Just the reverse is true in the industry. We think of the operator as the man who owns or manages the company while these people are referred to in the bill as applicators. The Bill calls for the development of schools for the training of our people throughout the state. Those of us who are in bird control should begin to prepare ourselves to meet this request, to be available for the schooling, have our people available for the schooling, and give this program all the co-operation that we can.