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Livestock emissions regulation with unknown damages and strategic technology adoption

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  • J. C. Hadrich
  • J. J. Jackson

Abstract

Livestock emissions have been identified as a contributor to greenhouse gas build-up yet have remained unregulated in the US. A game-theoretic model in the style of Tarui and Polasky (2005) was analysed where the dairy industry strategically chooses to abate air emissions with technology adoption and herd size decisions while a regulator chooses a tax rate on emissions to satisfy the desires of competing interest groups. This model allows the effects of potential air emission regulation on the dairy industry to be evaluated. Results demonstrate that dairy farms react to the increased cost of air regulation by decreasing herd size rather than investing in air emission abatement technology in the short run. This suggests that incentives may need to be put in place to induce adoption in emissions abatement technology at the livestock level in the long run.

Suggested Citation

  • J. C. Hadrich & J. J. Jackson, 2014. "Livestock emissions regulation with unknown damages and strategic technology adoption," Applied Economics, Taylor & Francis Journals, vol. 46(35), pages 4309-4317, December.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4309-4317
    DOI: 10.1080/00036846.2014.957440
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    References listed on IDEAS

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    Cited by:

    1. Tawanda Marandure & James Bennett & Kennedy Dzama & Godswill Makombe & Cletos Mapiye, 2021. "Drivers of low-input farmers’ perceptions of sustainable ruminant farming practices in the Eastern Cape Province, South Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(6), pages 8405-8432, June.
    2. L. X. Xiong & X. Y. Li & J. J. Ning & Y. R. Dong & Y. Yan, 2023. "The effects of dynamic incentives on the recycling of livestock and poultry manure in a multiscenario evolutionary game," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 4301-4333, May.

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