Economic analysis reveals that many animal welfare improvements are cost-effective, and that the market failures preventing welfare improvements can be addressed through policy intervention.
The economics of animal welfare reform are more favorable than is often assumed. The gap in cost between high-welfare and conventional production has narrowed substantially for many species. The welfare costs that are real — like slower-growing chicken breeds — are often modest compared to total food spending. More importantly, many welfare harms are externalized onto public health systems, the environment and the animals themselves. Correcting these market failures through regulation is both economically and morally justified, and historical evidence from welfare reforms shows industry adaptation is achievable.