| > What will most likely happen is that the prices of pork will go up in Cali That assumes: * either pork production for CA takes place only inside CA or in other states they have two levels of pork production * if the latter, this further requires that pork producers are happy maintaining two levels of production * it also requires that no or few other states follow CA lead on requirements > Regulation simply equals increased prices Regulation is often (not always, but often) about bring externalities into the actual cost. So the full picture of the result of regulation needs to include: * what were the externalities now being priced? * where was the cost of the externalities previously experienced (e.g. poor communities dealing with runoff and waste from pork production) * what was the full cost of the externalities before regulation bought some of them into the actual price? * what are the remaining externalities after the regulation |