Costs of an environmental regulation in livestock farming: Evidence from pig production in rural China
We investigate the cost and benefit of one of the most stringent Chinese environmental regulations that led to a shutdown of a large number of livestock farms. The temporal and spatial variation in programme implementation allows us to employ a staggered difference-in-difference (DID) to identify the causal effects of the regulation. Our DID estimates show that while the regulation significantly reduced NH3-N, it has no significant effect on the other three important livestock related pollutants (pH, DO and COD).