Environmental policies make a difference in shaping producers' choices among dairy production technologies, the sizes and locations of their dairies, and even which dairies ultimately survive. Induced policy innovation means producers reacting to policies, and policies, in turn, being shaped by their effects. Profiles of experiences with environmental compliance in Texas and Florida were analyzed. Results demonstrate that the timing and sequencing of policy signals make a difference in compliance behavior and options. Furthermore, ex ante assessments of the costs of environmental compliance are challenging to carry out, and consequently can undermine the policy goal of maintaining the maximum number of options for compliance.


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