• Media type: E-Book
  • Title: The Heterogeneous Impact of China's Place-Based Environmental Regulations on its Hog Industry : A Synthetic Difference-in-Differences Approach
  • Contributor: Cheng, Nieyan [VerfasserIn]; Zhang, Wendong [VerfasserIn]; Xiong, Tao [VerfasserIn]
  • imprint: [S.l.]: SSRN, 2023
  • Extent: 1 Online-Ressource (66 p)
  • Language: English
  • DOI: 10.2139/ssrn.4366363
  • Identifier:
  • Keywords: China ; Hog ; Synthetic difference-in-differences ; Difference-in-differences ; Agricultural water pollution ; Place-based policy
  • Origination:
  • Footnote:
  • Description: Agricultural water pollution from the livestock industry is a growing concern in China and globally. As opposed to size-based regulations targeting larger facilities in the United States, China’s regulations are place-based in nature. Since 2014, China classified eight urban provinces in the southeast as a Development Control Zone (DCZ), which prohibits new hog facility construction and encourages hog farms to relocate to other regions. Leveraging a novel, doubly-robust identification strategy, synthetic difference-in-differences, and the place-based nature of China’s environmental regulations, we provide one of the first systematic analyses of the impacts of the regulations on the county-level hog and sow inventories, especially revealing heterogeneous responses. Our results show that, on average, the regulations led to a 14.7% reduction in hog inventories after the environmental regulations in the counties in DCZ provinces, mainly resulting from hog farm closures impacting over 20 million head of pigs and causing U.S.$5.62 billion loss in hog sectoral revenue. The treatment effects vary substantially both within and across DCZ provinces: wealthier urban provinces such as Zhejiang experienced a reduction in hog and sow inventories of around 40%, and counties upstream of big cities or those designated as main hog counties saw steeper declines as well
  • Access State: Open Access