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

Applications and Potentials for Biogenic Methane Recovery Operations in Nebraska Agriculture, Industry, and Economic Development

ABSTRACT: This thesis report illustrates the applications and potentials of biogenic methane recovery in Nebraska’s agricultural and industrial sectors and as a means for increasing sustainable economic development in the state’s rural communities. As the nation moves toward a new green economy, biogenic methane recovery as a waste management strategy and renewable energy resource presents significant opportunities for Nebraska to be a national and world leader in agricultural and industrial innovation, advanced research and development of renewable energy technology, and generation of new product markets. Nebraska’s agricultural economy provides a distinct advantage to the state for supporting methane recovery operations that provide long-term economic and environmental partnerships among producers, industry, and communities. These opportunities will serve to protect Nebraska’s agricultural producers from volatile energy input markets and as well as creating new markets for Nebraska agricultural products. They will also serve to provide quality education and employment opportunities for Nebraska students and businesses. There are challenges and issues that remain for the state in order to take advantage of its resource potential. There is a need to produce a comprehensive Nebraska biogenic methane potential study and digital mapping system to identify high-potential producers, co-products, and markets. There is also a need to develop a web-based format of consolidated information specific to Nebraska to aid in connecting producers, service providers, educators, and policy-makers.