This paper explores the relationship between state level environmental regulations and stocking and location decisions in the U.S livestock and poultry industry (beef, chicken, dairy and hogs). Rather than conduct this analysis on a species-by-species basis, we choose to focus upon the overall size of the livestock industry (expressed in animal units) and the size of industry found on large, medium and small operations by state (48) and over time (28 yrs). Results indicate that industry may drive policy rather than the converse. However, since we also find that existing policy rules have differential impacts on the industry by operation size, we conclude that structural change in the industry may be driven in part by size or legal structure discriminating regulations.


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