This dissertation consists of three essays. The first essay presents a dynamic model that analyzes the simultaneous use of a polluting non-renewable resource (coal) and an alternative technology (solar energy). It contributes to the literature by presenting a conceptual framework to characterize the production, exports and imports of a polluting non-renewable resource in the presence of a high cost substitute renewable technology. Results indicate that by ignoring external costs, inter-temporal social welfare from using both energy sources is overestimated and these market failures can be corrected by imposing a tax equal to the external cost per unit of coal used to induce the first best outcome. Subsidizing the backstop by an amount equal to the tax is a second best solution. The second essay analyzes the extent to which climatic variability affects agricultural productivity across LAC countries. The estimation is based on a stochastic production frontier, which is used to decompose total factor productivity (TFP). The results show that average annual temperature and precipitation have a negative significant impact on production and these adverse effects are getting more pronounced over time. Climatic variability has a more severe impact on Caribbean and Central America countries. Technological progress is found to play a key role in climate adjusted total factor productivity change. South and Central American countries are catching-up to their production frontier. TFP for these countries, except for Nicaragua and El Salvador, is converging to that of Brazil, which defines the frontier. All Caribbean countries are lagging behind and not converging. The third essay adopts a dynamic stochastic production frontier in which technical inefficiency from production is allowed to be auto-correlated over time. Results reveal that there are systematic differences in production and TE across LAC countries. Agricultural RD is a determining factor in inefficiency levels. The mean rate of return on agricultural RD across the 11 LAC countries is estimated to be 16.0%. The results indicate that the El Niño–Southern Oscillation accounts for an average annual loss in agricultural output equal to US $484 million in 2005 values across the LAC countries included in the analysis.

The proportion of the world's population that directly interacts with agriculture and natural resources for their daily bread is declining amidst structural transformation (Timmer et al. 2009). Commensurately, the expectations and hopes placed on the remaining food and fiber producers in the world seems to ever increase, not only in terms of the provision of food and fiber, but increasingly in terms of environmental management and the conservation of intersecting natural resources (Blundo et al. 2018, Messerli et al. 2019, Wunder et al. 2020, Baylis et al. 2022). It is not a stretch to declare that there is a lot riding on the welfare of the food and fiber producers of the world (e.g., food security), and on the extent to which conditions that enhance the welfare of the farmer (gatherer) also enhance general welfare in matters beyond the direct provision of food and fiber (e.g., climate change, pollution control, and biodiversity conservation). To manage this state of affairs, the economics underpinning the production behavior of food and fiber producers and associated realized outcomes, are paramount to understand theoretically and to test empirically. In what follows, three applications are studied, each with a focus on a renewable natural resource of concern and an intersecting agricultural production sector where little to no empirical work has be done. The settings and questions are each broadly important and timely: * Do food price shocks cause deforestation, and if so how? * How do farmers decide whether to use managed pollination service markets, and are observed use patterns optimal? * Does the provision of index-based agricultural insurance lead to resource degradation, or improvement? Although on one level these topics are unrelated, the reality is that there are similar archetypal economic problems at the root of each of these questions, where the welfare of an agricultural agent, and the impacts from their production behavior, may or may not coincide with a social optimum. In chapter 2, evidence is presented that food price shocks, particularly for staples, can have significant impacts on deforestation (particularly through increases in price levels), that such shocks can drive smallholders to expand production broadly to address internal shocks to consumption and production, and that such land use change patterns can be casually miss-attributed to cash crop markets. In chapter 3, it is demonstrated that pollination dependent farmer's crop pollination behavior may be less static than has been presumed, that crop pollination behavior and production outcomes are influenced by adjacent land use and landscape heterogeneity, that there are diminishing returns to managed pollination use, and that reliance on pollination service markets is intimately related to the farmers production technology. In chapter 4, the roll-out of a successful index-based agricultural insurance product is studied at-scale, which theoretically might lead to resource degradation, or improvement (in this case for rangeland quality), and evidence is presented that resource degradation concerns may be over-blown, lending credence to the idea that addressing missing financial markets can enhance productivity and agent's welfare without degrading fundamental natural resource stocks.

This dissertation consists of three independent papers in the field of Agricultural and Natural Resource Economics. The first paper is related to consumer-side water conservation policies. My coauthor and I introduce a structural water demand model based on the assumption that consumers are inattentive and apply a behavioral decision rule in water consumption. We found our model can capture our sample consumers behavior well, suggesting water conservation policies should incorporate non-price instrument to prod consumers for water saving. The second paper relates to the industrial organization and antitrust in the US beer market. My coauthor and I found that in a recent beer merger case, the justice department's divestiture requirement (a popular structural merger remedy tool) may not be effective in prevent merger brands' price from raising, at least in the short-run after the merger. This paper suggests that divestiture may fail as a merger remedy due to its certain idiosyncratic details. The third paper investigates the impact of corn production in US Midwest states on the US Reformulated Gasoline Program. We found that the US Reformulated Gasoline Program caused massive corn production in the Midwest, and the pollution from nitrogen-based fertilizer usage in agriculture reversely affect the efficacy of the Reformulated Gasoline Program, aiming to improve air quality.

Achieving zero hunger and food security is a top priority in the United Nations Development Goals (UNDGs). In an era characterized by high population growth and increasing pressure on agricultural systems, efficiency in the use of natural resources has become central to sustainable agricultural practices. Fundamentally speaking, eco-efficiency is about maximizing agricultural outputs, in terms of quantity and quality, using less land, water, nutrients, energy, labor, or capital. The concept of eco-efficiency involves both the ecological and economic aspects of sustainable agriculture. It is therefore essential to understand the interaction of ecosystem constituents within the extensive agricultural landscape, as well as farmers’ economic needs. This book examines the latest eco-efficient practices used in agro-systems. Drawing upon research and examples from around the world, it offers an up-to-date overview, together with insights into directly applicable approaches for poly-cropping systems and landscape-scale management to improve the stability of agricultural production systems, helping achieve food security. The book will be of interest to educators, researchers, climate change scientists, capacity builders and policymakers alike. It can also be used as additional reading material for undergraduate and graduate courses on agriculture, forestry, soil science, and the environmental sciences.