Within a general equilibrium model, this paper identifies a novel animal welfare externality that occurs if the private animal friendliness in a market economy falls short of the social animal friendliness used by the social planner when determining the efficient allocation. The animal welfare...

In the past decade, animal welfare has been increasingly recognized in importance in commercial livestock operations. Governments, academic institutions, and animal welfare professionals are addressing animal welfare at different points in the agricultural supply chain, while consumers are...