Evaluation of Policies on Inappropriate Treatment of Dead Hogs from the Perspective of Loss Aversion

Abstract

Punishment policies on the inappropriate treatment of dead hogs play a key role in safeguarding public health and environmental protection. These policies aim to regulate the behavior of farmers and promote the development of sustainable agriculture. Farmers’ evaluation of a policy can be used to measure its effectiveness, and loss aversion is a factor that has been little studied. This study surveyed 404 hog farmers in China, and analyzed the factors that influenced their evaluation of the penalties for the inappropriate treatment of dead hogs during 2016 and 2017. We used three indicators for the evaluation of the penalties: the degree of necessity, implementation, and effectiveness. Special attention was paid to farmers’ aversion to financial penalties and police detention time, which was elicited using economic experiments. The results show that farmers are more likely to be averse to police detention time than financial penalties, and suggest that the level of each indicator needs to be increased. The results from an ordered Probit model show that there are both similarities and differences between the formation paths of the three indicators. An aversion to financial penalties will help to improve the degree of implementation. An aversion to police detention time will lead to a negative trend in the degree of effectiveness. An in-depth analysis of the factors that influence farmers’ evaluation of policies to punish inappropriate treatment of dead hogs may provide a basis for the design of government policies to improve environmental protection performance.