What the study found
The study found that in the American meatpacking industry, Chicago's largest meatpackers reduced pollution and production costs at the same time through innovative by-product utilization. It also found that less efficient competitors responded with rent-seeking behavior, which the authors say helped dismantle the industrial system that supported those gains.
Why the authors say this matters
The authors conclude that rent-seeking behavior can obstruct market-based innovations that promote sustainability. They also suggest that, in some circumstances, profit-seeking entrepreneurship in competitive and lightly regulated markets may produce better environmental results than management by elected officials.
What the researchers tested
The researchers used a historical case study of the American meatpacking industry. They examined Chicago meatpackers' use of by-product utilization, the resulting cost and pollution changes, and the later political response by competing firms.
What worked and what didn't
The Chicago meatpackers' innovative by-product utilization appears to have worked in reducing both pollution and production costs. By contrast, the rent-seeking response from less efficient competitors appears to have worked against those innovations by pressuring policymakers to dismantle the system of industrial organization.
What to keep in mind
This is a historical case study focused on one industry, so the findings are limited to that context. The abstract does not describe additional limitations beyond the scope of the case.
Key points
- Chicago's largest meatpackers reduced pollution and production costs through by-product utilization.
- Less efficient competitors responded with rent-seeking behavior.
- That rent-seeking helped pressure policymakers to dismantle the industrial system created by the Chicago meatpackers.
- The authors argue that rent-seeking can block sustainability-oriented market innovations.
- The study suggests that competitive, lightly regulated markets may sometimes outperform elected officials on environmental outcomes.
Disclosure
- Research title:
- Rent-seeking can undermine environmental gains from meatpacking innovation
- Authors:
- Pierre Desrochers, Andrew DA Smith
- Institutions:
- University of Birmingham, University of Toronto
- Publication date:
- 2026-07-04
- OpenAlex record:
- View
- Image credit:
- John Vachon, Wikimedia Commons, Public domain
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