How Does Environmental Regulation Affect the Development of China’s Pig Industry

Abstract

(1) Background: The pig production sector is a cornerstone in China’s agricultural industry and it urgently needs a transition from a conventional sector to one that is efficient, sustainable, and of high quality. (2) Methods: This study examines the effects of environmental regulation (ER) on the development of the pig industry (DPI) between 2005 and 2019. From the perspective of the breeding, production, and consumption industry chain, a comprehensive evaluation index system is used to assess the progress of the pig industry. Furthermore, the effects of ER on the DPI and its mechanism were evaluated using the FGLS and system-GMM. (3) Results: According to the empirical findings, ER exhibits a U-shaped non-linear effect on DPI in both high- and low-pig-production zones. Technological innovation and large-scale farming would lessen the detrimental effects of ER on DPI. Additionally, according to the outcomes of the implementation of local environmental protection policies, LER and DPI have an inverted U-shaped relationship in major producing areas and a U-shaped relationship in non-major producing areas. (4) Conclusions: This essay offers several solutions and advice, including strengthening environmental regulation legislation and encouraging breeding industry advancements.