The Price of Pork: Regulation Exemptions and Water Pollution in North Carolina
Over the last thirty years, pork production has increased more in North Carolina than in any other state, contributing to a wide variety of environmental and social problems. In this paper, we explain how growth in pork production, and Concentrated Animal Feeding Operations (CAFOs) in general, may have been incentivized by the particular way that North Carolina regulates pollution from CAFOs. We use evidence from both agricultural data and available environmental data to argue that firm or industry exemptions from environmental regulation can remove incentives even for regulated firms to abide by regulations in the long run, and may even affect the space of feasible enforcement options for a regulatory authority to limit pollution from firms. This could lead to inefficiently high public expenditures on pollution abatement measures and distorted cost-benefit analyses of private pollution abatement.
Thursday, November 7 at 12:00pm to 1:00pm
2599 Reynolda Road, Winston Salem, NC 27106