The geographical concentration of poultry production has given rise to waste management problems including buildup of on site nutrients, which creates potential for leaching into groundwater and for contamination of surface waters. Environmental problems associated with geographically concentrated livestock production and possible regulatory solutions provide the motivation for this research.; A typical broiler house will produce 125 to 150 tons of litter material annually. Litter is a combination of poultry feed, manure, and bedding materials. The standard method for disposal of poultry litter is land application as fertilizer to permanent pastures close to the source site. Due to the cost of transporting litter, overfertilization of land can occur in areas of concentrated poultry production. This may contribute to excess nutrient and chemical runoff into local waterbodies and ground water supplies.; Eutrophication is the contamination of waterways with runoff nutrients such as nitrogen and phosphorous that causes algae and other microorganisms to proliferate, which leads to unsightly and harmful algae blooms that lower the level of dissolved oxygen and cause fish and aquatic organisms to die. It can also be a threat to the health of people in contact with affected waters due to the microbes (bacteria, protozoa, viruses) in animal waste that can cause disease.; This research concentrates on three aspects of the waste management problem in poultry production. First, a Pigouvian tax is estimated that, if charged to producers, would ensure environmental goals are met. Second, the effect of higher poultry prices on consumers due to regulation is measured in terms of economic equity. Finally, the potential for ecolabeling of poultry products is explored.
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