Environmental effects of intensification of agriculture: livestock production and regulation

This article deals with the relationship between industrialization of agriculture and the environment in developing countries. We specifically focus on livestock production and regulation. We develop a simple economic framework to demonstrate the effect of location on intensification of industrial activity in farming, and discuss this issue in the context of urbanization and economic growth in developing countries. Policy implications of the model are discussed in light of the experience of developed countries in regulating livestock pollution and other externalities. We argue that environmental problems from agricultural industrialization in developing countries may pose major challenges. In the case of livestock production, these are compounded by production intensity, high population densities in periurban and urban areas, and the generally lower public health standards. As the recent outbreaks of severe acute respiratory syndrome (SARS) and avian influenza epidemics in Asia suggest, the new era of globalization and the onset of a free world trade regime points to the urgent need for developing countries to install inspection and enforcement mechanisms that ensure product safety and quality, as well as minimize the adverse effects on the environment.