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Externalities From Roaming Livestock: Explaining The Demise Of The Open Range

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  • Centner, Terence J.
  • Griffin, Ronald C.

Abstract

Fence-in laws in most states require ranchers to pay for fences to keep their livestock from trespassing onto others' property. Some states, or jurisdictions within states, have a fence-out rule that requires ranchers' neighbors to pay for fences to keep livestock out. Both rules are Pareto optimal. Using a potential Pareto criterion, we show that a preference for fence-out in some areas may end as conditions change, such as increased nonranching land uses. Changed conditions may have legal consequences. Specific fence-out and fence cost-sharing provisions may be potentially Pareto inefficient and may be challenged for being unconstitutional under the due process clause.

Suggested Citation

  • Centner, Terence J. & Griffin, Ronald C., 1998. "Externalities From Roaming Livestock: Explaining The Demise Of The Open Range," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(01), pages 1-14, July.
    • Handle: RePEc:ags:jlaare:31183
    DOI: 10.22004/ag.econ.31183
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    References listed on IDEAS

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    1. Centner, Terence J., 1997. "Reforming Outdated Fence Law Provisions: Good Fences Make Good Neighbors Only If They Are Fair," Faculty Series 16688, University of Georgia, Department of Agricultural and Applied Economics.
    2. Daniel W. Bromley, 1978. "Property Rules, Liability Rules, and Environmental Economics," Journal of Economic Issues, Taylor & Francis Journals, vol. 12(1), pages 43-60, March.
    3. Carlisle Ford Runge, 1981. "Common Property Externalities: Isolation, Assurance, and Resource Depletion in a Traditional Grazing Context," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 595-606.
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    5. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    6. Ronald C. Griffin, 1995. "On the Meaning of Economic Efficiency in Policy Analysis," Land Economics, University of Wisconsin Press, vol. 71(1), pages 1-15.
    7. Dahlman, Carl J, 1979. "The Problem of Externality," Journal of Law and Economics, University of Chicago Press, vol. 22(1), pages 141-162, April.
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    Keywords

    Livestock Production/Industries;

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