Research Reports
Externalities and Policy Measures of the Livestock Industry
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AuthorJi, Inbae
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Publication Date2013.12.30
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Original
Background of Research
Foul smells and water pollution due to livestock excretions deteriorate the quality of life and bring down land prices in surrounding area. The outbreak of livestock diseases seriously damages the regional economy. In spite of these negative influences, the livestock industry has multi-functionality such as a safe and stable supply of livestock products, preservation of farmland and landscapes, and the activation of the rural economy. Therefore this research classifies the externalities of the livestock industry as positive and negative effects, measures their economic value, and suggests policy measures to solve them.
Method of Research
The externalities of the livestock industry were classified and a theoretical solution was sought through the review of preceding researches. Implications were derived based on the survey for excellent domestic and overseas cases through literatures, site visits and the internet. In order to measure the economic value of the externality of the livestock industry, CVM was conducted through consulting and participation of experts. The degree of importance and results of policies related to the externality are evaluated to find implications by livestock experts.
Research Results and Implications
The result of the survey revealed that 65.4% of the population think that a positive function of the livestock industry is more important than its negative function. They are willing to pay 7,495 ~ 10,314 won every year per household to expand positive externalities of the livestock industry and to reduce negative externalities. The value of the externalities of the livestock industry is estimated at approximately 134.5 ~ 185.1 billion won for the next 5 years.
The top priority task for the sustainable environment-friendly livestock industry is to solve the externality of the livestock industry. The beneficiary pays principle and polluter pays principle should be applied to solve the externality of the industry. Specific methods are as follows. First of all, in order to maximize the external economy of the livestock industry, the government has to take the initiative in reinforcing food security and in preserving the environment and rural landscapes. Second, the future direction of livestock industry policy needs to be changed from quantitative growth focused on productivity to qualitative growth that considers safety and the environment.
To reduce the external diseconomy of the livestock industry, it is necessary to make livestock raisers pay environmental cost by intensifying education. The Livestock Excretion Pollution Management Center and Livestock Excretion Management Committees need to be established to solve the problem of environmental pollution and to reinforce monitoring the treatment of livestock excretions. An obligation to keep the records for livestock excretion management and disposal needs to be imposed on livestock farms. Additionally, development and distribution of the technologies for livestock excretion management and disposal, a balance between regulation and support for the livestock industry, intensification of the efficiency of support programs, and consumers' monitoring are required.
Researchers: In Bae Ji, Woo Jin Song, Jin Nyoun Kim, Yong Geon Lee
Research Period: 2013. 1～2013. 12
E-mail address: jiinbae@krei.re.kr
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