Positive and Negative Agglomeration Externalities: Arbitration in the Pig Sector

Solène Larue, Jens Abildtrup and Bertrand Schmitt

Spatial Economic Analysis, 2011, vol. 6, issue 2, 167-183

Abstract: Abstract In this study we analyse the determinants of pig production location in Denmark with a particular focus on positive and negative agglomeration externalities. Based on the theory of agglomeration and a discussion of the organization of the Danish pig production sector, a model of pig production is developed and tested empirically, applying the FG2SLS approach. Our results show that technical and pecuniary externalities have a positive effect on location, while the impact of environmental regulations is ambiguous. Indeed, the results show that urbanization economies are more important than the negative impact of land competition at the local level, but that neighbouring land competition implied by environmental regulations seems to have a negative effect on location. Externalités d'agglomérations positives et négatives: arbitrage dans le secteur de la production porcine Résumé Dans la présente étude, nous analysons les déterminants de la localisation de la production porcine au Danemark, en insistant tout particulièrement sur les externalités d'agglomération positives et négatives. Nous créons un modèle pour la production porcine, sur la base de la théorie de l'agglomération et de discussions sur l'organisation du secteur de la production porcine au Danemark, et nous le testons de façon empirique, en appliquant la méthode FG2SLS. Nos résultats indiquent que les externalités techniques et pécuniaires ont un effet positif sur la localisation , alors que l'impact des rėglementations environnementales est ambigu. Externalidades de la aglomeración positiva y negativa: arbitraje en el sector porcino Extracto En este estudio analizamos los determinantes de la ubicación de la producción de cerdos en Dinamarca con un enfoque particular en las externalidades de la aglomeración positiva y negativa. Basado en la teoría de la aglomeración y en una discusión sobre la organización del sector de la producción de cerdos danesa, se desarrolla y ensaya empíricamente un modelo de producción de cerdos, aplicando el planteamiento FG2SLS. Nuestros resultados muestran que las externalidades técnicas y pecuniarias tienen un efecto positivo sobre la ubicación, mientras que el impacto de las normativas medioambientales es ambiguo.

Keywords: Agglomeration externalities; spatial econometrics; environmental regulations; C13; R30; R15; Q11 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (16)

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DOI: 10.1080/17421772.2011.557773

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