Hayvan Refahı ve Koruma Dernekleri
Hayvan Hakkı Savunucuları Neden Refah Reformları İçin Çalışıyor?
Dünyada hayvan savunuculuğu hareketinin en güçlü olduğu ülkelerde, önemli hayvan koruma dernekleri ve hayvan partileri çeşitli refah ...
California Kafes Yasağı
10 <anchor>California Kafes Yasağı</anchor> 16. sayfanın sol üstündeki grafikte California’da batarya kafesi yasağı geçmediğinde ABD’deki yumurta üretim artış trendiyle, yasak olduğu durumda görülen artış karşılaştırılmıştır. Yasağın hayvan sayısını yaklaşık 4 milyon kadar azalttığı görülmektedir. “Outside of California, the policy reduces the number of laying hens”
Piecemeal Farm Regulation and the U.S. Commerce Clause - Carter - 2021 - American Journal of Agricultural Economics - Wiley Online Library
- Skip to Article Content
- Skip to Article Information

Search withinThis JournalAnywhere

- Search term

- Search term

Login / Register

Article

# Piecemeal Farm Regulation and the U.S. Commerce Clause

Colin A. Carter

K. Aleks Schaefer

Corresponding Author

Daniel Scheitrum

Colin A. Carter

K. Aleks Schaefer

Corresponding Author

Daniel Scheitrum

First published: 28 May 2020

Citations: 13

Colin A. Carter, Department of Agricultural and Resource Economics, University of California, Davis and Giannini Foundation of Agricultural Economics. K. Aleks Schaefer, Department of Agricultural, Food, and Resource Economics, Michigan State University. Daniel Scheitrum, Department of Agricultural and Resource Economics, University of Arizona. The authors would like to thank editor Timothy Richards and the anonymous referees for comments that greatly improved the article and the University of Arizona Office of the General Counsel for their assistance in obtaining egg import data.

Tools

ShareShare

Give access

Share full text access

Share full-text access

I have read and accept the Wiley Online Library Terms and Conditions of Use

Shareable Link

Use the link below to share a full-text version of this article with your friends and colleagues. Learn more.

Copy URL

Share a link

Share on

- Email
- Facebook
- Twitter
- LinkedIn
- Reddit
- Wechat

### Abstract

Since January 2015, California has required that all shell eggs consumed in the state be produced cage free or by hens housed in enlarged cages defined under Assembly Bill 1437. This paper assesses the effects of California farm animal housing restrictions on egg prices and production practices inside and outside California, and on the volume of interstate trade. We find that the California regulation generated short- and long-run egg price increases across the U.S. It has also bifurcated production methods outside California yielding more concentrated interstate trade. The largest share of the associated private costs was borne by out-of-state consumers. The balance between a state's power to regulate food production within its borders and the impacts on out-of-state producers and consumers has potential legal implications under the dormant Commerce Clause of the U.S. Constitution.

## Supporting Information

Appendix S1: Supporting information

Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article.

## References

- Allender, William J, and Timothy J Richards. 2010. Consumer Impact of Animal Welfare Regulation in the California Poultry Industry. Journal of Agricultural and Resource Economics 35: 424–42.

- Andrews, Donald WK, and Werner Ploberger. 1994. Optimal Tests When a Nuisance Parameter Is Present only under the Alternative. Econometrica: Journal of the Econometric Society 62: 1383–414.

10.2307/2951753

- Andreyeva, Tatiana, Michael W Long, and Kelly D Brownell. 2010. The Impact of Food Prices on Consumption: A Systematic Review of Research on the Price Elasticity of Demand for Food. American Journal of Public Health 100(2): 216–22.

10.2105/AJPH.2008.151415

- Bebchuk, Lucian Arye, and Alma Cohen. 2003. Firms' Decisions Where to Incorporate. Journal of Law and Economics 46(2): 383–425.

10.1086/378574

- Besley, Timothy J, and Harvey S Rosen. 1999. Sales Taxes and Prices: An Empirical Analysis. National Tax Journal, 52(2): 157–178.

- Cage Free California. 2008. Prop 2 Commercials. Available at: www.cagefreeca.com. (Last accessed May 13, 2020).

- Caswell, Julie A, and Jaana K Kleinschmit v. L.1997. Using Benefit-Cost Criteria for Settling Federalism Disputes: An Application to Food Safety Regulation. American Journal of Agricultural Economics 79(1): 24–38.

10.2307/1243940

- Davies, Robert B. 1987. Hypothesis Testing When a Nuisance Parameter Is Present only under the Alternative. Biometrika 74(1): 33–43.

- Dobrowolska, Agnieszka, and Scott Brown. 2016. The Economic Impact of the 2015 Avian Influenza Outbreak on US Egg Prices. Available at: https://farmdocdaily.illinois.edu/. (Last accessed May 13, 2020).

- Driscoll, John C, and Aart C Kraay. 1998. Consistent Covariance Matrix Estimation with Spatially Dependent Panel Data. Review of Economics and Statistics 80(4): 549–60.

10.1162/003465398557825

- Easterbrook, Frank H. 1983. Antitrust and the Economics of Federalism. Journal of Law and Economics 26(1): 23–50.

10.1086/467024

- Engle, Robert F, and Clive WJ Granger. 1987. Co-Integration and Error Correction: Representation, Estimation, and Testing. Econometrica: Journal of the Econometric Society 55: 251–76.

10.2307/1913236

- Fosten, Jack. 2012. Rising Household Diesel Consumption in the United States: A Cause for Concern? Evidence on Asymmetric Pricing. Energy Economics 34(5): 1514–22.

10.1016/j.eneco.2012.06.025

- Fremeth, Adam R, and J Myles Shaver. 2014. Strategic Rationale for Responding to Extra-Jurisdictional Regulation: Evidence from Firm Adoption of Renewable Power in the US. Strategic Management Journal 35(5): 629–51.

10.1002/smj.2118

- Galgiani, Cathleen. 2009. Shelled Eggs: Compliance with Animal Care Standards. Hearing of the California Assembly Committee on Agriculture.

- Gecker, Jocelyn. 2018. Californians Weigh Cage-Free Hens by 2022. Associated Press News.

- Granger, Clive WJ. 1980. Testing for Causality: A Personal Viewpoint. Journal of Economic Dynamics and Control 2: 329–52.

10.1016/0165-1889(80)90069-X

- Hannan, Edward J, and Barry G Quinn. 1979. The Determination of the Order of an Autoregression. Journal of the Royal Statistical Society: Series B: Methodological 41(2): 190–5.

- Johansen, Søren. 1995. Likelihood-Based Inference in Cointegrated Vector Autoregressive Models. Oxford: Oxford University Press on Demand.

10.1093/0198774508.001.0001

- Jones, Deana R, Kenneth Edward Anderson, and Jean Y Guard. 2012. Prevalence of Coliforms, Salmonella, Listeria, and Campylobacter Associated with Eggs and the Environment of Conventional Cage and Free-Range Egg Production. Poultry Science 91(5): 1195–202.

10.3382/ps.2011-01795

- Kastens, Terry L, and Gary W Brester. 1996. Model Selection and Forecasting Ability of Theory-Constrained Food Demand Systems. American Journal of Agricultural Economics 78(2): 301–12.

10.2307/1243704

- Kotschedoff, Marco JW, and Max J Pachali. 2020. Higher Minimum Quality Standards and Redistributive Effects on Consumer Welfare. Marketing Science 39(1): 253–80.

10.1287/mksc.2019.1172

- Linder, Ann. 2018, April. Legislative Analysis of H.R. 4879: The “Protect Interstate Commerce Act of 2018”. Cambridge, MA: Animal Law & Policy Program, Harvard Law School.

- Lusk, Jayson L. 2010. The Effect of Proposition 2 on the Demand for Eggs in California. Journal of Agricultural & Food Industrial Organization 8(1): 1–18.

10.2202/1542-0485.1296

- Lusk, Jayson L. 2017. Evaluating the Policy Proposals of the Food Movement. Applied Economic Perspectives and Policy 39(3): 387–406.

10.1093/aepp/ppx035

- Malone, Trey, and Jayson L Lusk. 2016. Putting the Chicken before the Egg Price: An Ex Post Analysis of California's Battery Cage Ban. Journal of Agricultural and Resource Economics 41(3): 518–532.

- Matthews, WA, and DA Sumner. 2014. Effects of Housing System on the Costs of Commercial Egg Production. Poultry Science 94(3): 552–7.

10.3382/ps/peu011

- McEowen, Roger, and Kristine Tidgren. 2014. Federal Court Dismisses Challenge to California Egg Production Law. Ames, IA: Iowa State University Center for Agricultural Law and Taxation.

- Mullally, Conner, and Jayson L Lusk. 2017. The Impact of Farm Animal Housing Restrictions on Egg Prices, Consumer Welfare, and Production in California. American Journal of Agricultural Economics 100(3): 649–69.

10.1093/ajae/aax049

- Mussa, Michael, and Sherwin Rosen. 1978. Monopoly and Product Quality. Journal of Economic Theory 18(2): 301–17.

10.1016/0022-0531(78)90085-6

- Neill, Clinton L, Rodney B Holcomb, and Jayson L Lusk. 2020. Estimating Potential Beggar-Thy-Neighbor Effects of State Labeling Programs. Agribusiness 36: 3–19.

10.1002/agr.21625

- Norwood, F Bailey, and Jayson L Lusk. 2011. Compassion, by the Pound: The Economics of Farm Animal Welfare. New York: Oxford University Press.

10.1093/acprof:osobl/9780199551163.001.0001

- Norwood, Franklin Bailey, Glynn Tonsor, and Jayson L Lusk. 2018. I Will Give You My Vote but Not My Money: Preferences for Public versus Private Action in Addressing Social Issues. Applied Economic Perspectives and Policy 41(1): 96–132.

10.1093/aepp/ppy002

- Oates, Wallace E, and Robert M Schwab. 1988. Economic Competition Palgrave Macmillan among Jurisdictions: Efficiency Enhancing or Distortion Inducing? Journal of Public Economics 35(3): 333–54.

10.1016/0047-2727(88)90036-9

- Okrent, Abigail M, and Julian M Alston. 2011. Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand. Gianini Foundation Monograph 48. Berkeley, CA: Giannini Foundation of Agricultural Economics.

- Otto, Dan, Maro Ibarburu, and Lee Schulz. 2013. Economic Importance of the Iowa Egg Industry. Iowa State University Extension and Outreach Report.

- Partridge, Mark, Alexandra Tsvetkova, Sydney Schreiner, and Carlianne Patrick. 2019. The Effects of State and Local Economic Incentives on Business Start-Ups in the US: County-Level Evidence. Andrew Young School of Policy Studies Research Paper Series, 19-02.

- Perron, Pierre. 2006. Dealing with Structural Breaks. In Palgrave Handbook of Econometrics, Vol 1, ed. H Hassani, Terence C Mills and Kerry Patterson, 278–352. London: Palgrave Macmillan.

- Richards, Timothy J, William J Allender, and Stephen F Hamilton. 2012. Commodity Price Inflation, Retail Pass-Through and Market Power. International Journal of Industrial Organization 30(1): 50–7.

10.1016/j.ijindorg.2011.05.003

- Riekhof, Gina M, and Michael E Sykuta. 2005. Politics, Economics, and the Regulation of Direct Interstate Shipping in the Wine Industry. American Journal of Agricultural Economics 87(2): 439–52.

10.1111/j.1467-8276.2005.00733.x

- Rose-Ackerman, Susan. 1981. Does Federalism Matter? Political Choice in a Federal Republic. Journal of Political Economy 89(1): 152–65.

10.1086/260955

- Saitone, Tina L, and Richard J Sexton. 2010. Product Differentiation and Quality in Food Markets: Industrial Organization Implications. Annual Review of Resource Economics 2(1): 341–68.

10.1146/annurev.resource.050708.144154

- Scheitrum, Daniel P, Colin A Carter, and Cesar Revoredo-Giha. 2018. WTI and Brent Futures Pricing Structure. Energy Economics 72: 462–9.

10.1016/j.eneco.2018.04.039

- Sumner, Daniel A, Hamish Gow, David Hayes, Willie Matthews, Bailey Norwood, John Thomas Rosen-Molina, and Whitney Thurman. 2011. Economic and Market Issues on the Sustainability of Egg Production in the United States: Analysis of Alternative Production Systems. Poultry Science 90(1): 241–50.

10.3382/ps.2010-00822

- Sumner, Daniel A. 2017. Economics of US State and Local Regulation of Farm Practices, with Emphasis on Restrictions of Interstate Trade. Annual Review of Resource Economics 9: 13–31.

10.1146/annurev-resource-100516-053646

- Sumner, Daniel A, J Thomas Rosen-Molina, William A Matthews, Joy A Mench, and Kurt R Richter. 2008. Economic Effects of Proposed Restrictions on Egg-Laying Hen Housing in California. Davis, CA: University of California Agricultural Issues Center.

- Villar, Jose A, and Frederick L Joutz. 2006. The Relationship between Crude Oil and Natural Gas Prices1–43. Washington DC: Energy Information Administration, Office of Oil and Gas.

- Wolf, Holger C. 2000. Intranational Home Bias in Trade. Review of Economics and Statistics 82(4): 555–63.

10.1162/003465300559046

- Zaklan, Aleksandar, Jan Abrell, and Anne Neumann. 2016. Stationarity Changes in Long-Run Energy Commodity Prices. Energy Economics 59: 96–103.

10.1016/j.eneco.2016.07.022

## Citing Literature



May 2021

Pages 1141-1163



Close Figure Viewer

Previous FigureNext Figure

Caption

## Additional links

### About Wiley Online Library

### Help & Support

### Opportunities

### Connect with Wiley

Copyright © 1999-2024 John Wiley & Sons, Inc or related companies. All rights reserved, including rights for text and data mining and training of artificial intelligence technologies or similar technologies.

The full text of this article hosted at iucr.org is unavailable due to technical difficulties.



## Log in to Wiley Online Library

Email or Customer ID

Password



## Change Password

Old Password

New Password

Too ShortWeakMediumStrongVery StrongToo Long

#### Your password must have 10 characters or more:

- a lower case character,
- an upper case character,
- a special character
- or a digit

Too Short

## Password Changed Successfully

Your password has been changed

## Create a new account

Email



## Forgot your password?

Enter your email address below.

Email

Please check your email for instructions on resetting your password.
If you do not receive an email within 10 minutes, your email address may not be registered,
and you may need to create a new Wiley Online Library account.

## Request Username

Can't sign in? Forgot your username?

Enter your email address below and we will send you your username

Email

Close

If the address matches an existing account you will receive an email with instructions to retrieve your username