G. Cornelis Van Kooten is a professor of Economics and Canada Research Chair in Environmental Studies and Climate at the University of Victoria.

• List of TablesList of FiguresList of AcronymsChapter 1. Introduction 1.1 Setting the Agricultural Stage 1.1.1 Top Agricultural Commodity Producers 1.1.2 Food Security: Green Revolution and Crop Yields 1.2 Structure of the Book Guide to Literature Chapter 2. Project Evaluation Criteria 2.1 Private Financial Analysis 2.1.1 Financial Ranking Criteria 2.1.2 Conclusion 2.2 Society’s Perspective: Social Cost-Benefit Analysis 2.2.1 Benefits and Costs as Rent and Surplus 2.2.2 The Fundamental Equation of Applied Welfare Economics 2.2.3 Total Economic Value 2.2.4 Total (Average) Value Versus Marginal Value 2.2.5 Conclusion 2.3 Multiple Accounts and Alternative Criteria 2.3.1 Environmental Quality 2.3.2 Regional Economic Development and Employment: Indirect Benefits 2.3.3 Other Social Effects 2.3.4 Concluding Observations about Multiple Accounts 2.4 Alternative Methods for Evaluating Projects 2.4.1 Cost-Effectiveness Analysis 2.4.2 Multiple Criteria Decision Making 2.4.3 Life-Cycle Assessment 2.4.4 Cumulative Effects Analysis 2.5 Extreme Events and Irreversibility 2.6 Discounting and Choice of Discount Rate 2.6.1 Dilemmas in Choosing a Discount Rate in Cost-Benefit Analysis 2.6.2 Risk Adjusted Discount Rates 2.6.3 Discounting in an Intergenerational ContextGuide to the LiteratureFood for Thought Chapter 3. Externalities and Nonmarket Valuation 3.1 Cost Function Approach 3.2 Expenditure Function 3.2.1 Hedonic Pricing 3.2.2 Recreation Demand and the Travel Cost Method 3.3 Contingent Methods or Direct Approaches 3.3.1 Contingent Valuation Method 3.3.2 Choice Experiments/Stated Preferences 3.3.3 Constructed Preferences/Stakeholder Method 3.3.4 Fuzzy and ad hoc Methods for Determining Nonmarket Values 3.4 Benefit Transfer 3.5 Concluding Discussion Guide to Literature Food for Thought Chapter 4. International Trade and Applied Welfare Analysis 4.1 Spatial Price Equilibrium Trade Modelling 4.2 Unrestricted Free Trade 4.3 Trade and the Measurement of Wellbeing in Multiple Markets 4.3.1 Vertical Chains 4.3.2 Vertical and Horizontal Chains 4.4 Economic Policy and Trade: Examples 4.4.1 EU Import Restrictions on Canadian Durum Wheat 4.4.2 Incentivizing Anti-Dumping and Countervail Duty Complaints: Byrd Amendment 4.4.3 Restricting Log Exports 4.5 Concluding Discussion Appendix 4.A: Mathematics of Supply Restrictions Appendix 4.B: Calculation of Objective Function in SPE Models Guide to LiteratureFood for Thought Chapter 5. Governance, Rent-Seeking, Global Trade and the Agreement on Agriculture 5.1 Institutions and Governance 5.1.1 Models of Government 5.1.2 Takings 5.1.3 Institutions 5.1.4 Financing Government and Public Projects 5.2 Land Use and the Principal-Agent Problem 5.3 International Trade Negotiations and Agriculture 5.3.1 Agreement on Agriculture 5.3.2 Agreement on Subsidies and Countervail Measures 5.4 Tariff Rate Quota (TRQ) 5.5 Concluding Discussion Guide to Literature Food for Thought Chapter 6. Analysis of Agricultural Policy: Theory6.1 Background to Analysis of Agricultural Policy 6.2 Stock-Holding Buffer Fund Stabilization 6.3 Quotas and Supply-Restricting Marketing Boards 6.3.1 Quota and General Equilibrium Welfare Measurement 6.3.2 Quota Buyouts 6.3.3 Designing and Dismantling a Multi-Region Quota Program 6.4 Price Discrimination 6.5 Agricultural Technology: Genetically Modified Organisms 6.5.1 Agricultural Research and Development 6.5.2 Genetically Modified Organisms 6.6 Measuring Externalities in Agriculture 6.7 Concluding Discussion Guide to Literature Food for Thought Chapter 7. Agricultural Policies in the U.S. and Canada7.1 Agricultural Support: A Brief Overview 7.2 U.S. Agricultural Policy 7.2.1 Analysis of U.S. Price Support Programs 7.2.2 Reducing Production and Disposing of Excess Grain 7.2.3 Decoupling 7.2.4 Moving Forward 7.3 Canadian Agricultural Policy 7.3.1 State Trading: The Canadian Wheat Board (1935-2012) 7.3.2 Crop Insurance 7.3.3 Western Grain Stabilization Act (1976) 7.3.4 Transportation Programs and Subsidies 7.3.5 Supply Management 7.5 Concluding Discussion Guide to Literature Food for Thought Chapter 8. Agricultural Policy in Europe and Asia8.1 Agricultural Policy Reform in the European Union 8.1.1 Background to the European Union 8.1.2 High and Increasing Costs of Agricultural Programs 8.1.3 Integration of New Members 8.1.4 Reform of the CAP and Increasing Environmental Concerns 8.1.5 Further Analysis of Sector-Level Programs 8.1.6 Brexit 8.2 Agriculture in Developing Countries 8.2.1 Economy-wide Economic Reform and Chinese Agriculture 8.2.2 India and the Rice Economy Guide to Literature Food for Thought Chapter 9. Agricultural Business Risk Management 9.1 Privatizing Agricultural Hedges: Financial Products versus Insurance 9.1.1 Index Insurance and Derivatives 9.1.2 Futures Trading and Options 9.2 Agricultural Business Risk Management in the United States 9.2.1 Deep Loss Protection: The Federal Crop Insurance Program 9.2.2 Agricultural Business Risk Management Programs in the 2008 Farm Bill 9.2.3 Agricultural Business Risk Programs in the 2014 and 2018 Farm Bills 9.2.4 Dairy 9.2.5 Trade Issues 9.3 Agricultural Business Risk Management in Canada 9.3.1 The Shift from Price Support to Risk Management 9.3.2 Enter Growing Forward 9.3.3 Shift from Growing Forward (GF) to Growing Forward 2 (GF2) 9.3.4 Evaluation of Canada’s Agricultural Business Risk Programs 9.3.5 Going Forward: Canadian Agricultural Partnership 9.4 Concluding Discussion: Lessons for Agricultural Business Risk Management 9.4.1 Do Agricultural BRM Programs Distort Production? 9.4.2 Comparison of U.S. and Canadian Approaches to Risk Management Appendix 9.A: A Brief Look at the Economics of Risk and Risk Aversion 9.A.1 Systemic versus Idiosyncratic Risk 9.A.2 Expected Income Maximization and the Risk Aversion Coefficient Guide to Literature Food for Thought Chapter 10. Climate Change and Applied Welfare Economics 10.1 Anthropogenic Climate Change and its Impact 10.1.1 Climate Sensitivity 10.1.2 Damages 10.2 Economic Evaluation: The Role of Integrated Assessment Models 10.2.1 Climate Models and Policy Models 10.2.2 Carbon Price Policy Variable 10.3 Economic Impacts of Climate Change on Agriculture 10.3.1 Land Rents and the Regression Approach 10.3.2 Mathematical Representation of Landowner Decisions 10.4 Climate Change and Food Security 10.5 Discounting and Climate Urgency 10.5.1 Discounting Carbon 10.5.2 Economics of Wood Biomass Energy: Climate Urgency and Discounting 10.6 Mitigating Climate Change 10.6.1 International Action to Mitigate Climate Change 10.6.2 Agricultural Role in Mitigating Climate Change 10.6.3 Managing for Carbon: Carbon Pools and Fossil Fuel Substitution 10.7 Discussion Guide to LiteratureFood for Thought References

G. Cornelis Van Kooten is a professor of Economics and Canada Research Chair in Environmental Studies and Climate at the University of Victoria.

• List of TablesList of FiguresList of AcronymsChapter 1. Introduction 1.1 Setting the Agricultural Stage 1.1.1 Top Agricultural Commodity Producers 1.1.2 Food Security: Green Revolution and Crop Yields 1.2 Structure of the Book Guide to Literature Chapter 2. Project Evaluation Criteria 2.1 Private Financial Analysis 2.1.1 Financial Ranking Criteria 2.1.2 Conclusion 2.2 Society’s Perspective: Social Cost-Benefit Analysis 2.2.1 Benefits and Costs as Rent and Surplus 2.2.2 The Fundamental Equation of Applied Welfare Economics 2.2.3 Total Economic Value 2.2.4 Total (Average) Value Versus Marginal Value 2.2.5 Conclusion 2.3 Multiple Accounts and Alternative Criteria 2.3.1 Environmental Quality 2.3.2 Regional Economic Development and Employment: Indirect Benefits 2.3.3 Other Social Effects 2.3.4 Concluding Observations about Multiple Accounts 2.4 Alternative Methods for Evaluating Projects 2.4.1 Cost-Effectiveness Analysis 2.4.2 Multiple Criteria Decision Making 2.4.3 Life-Cycle Assessment 2.4.4 Cumulative Effects Analysis 2.5 Extreme Events and Irreversibility 2.6 Discounting and Choice of Discount Rate 2.6.1 Dilemmas in Choosing a Discount Rate in Cost-Benefit Analysis 2.6.2 Risk Adjusted Discount Rates 2.6.3 Discounting in an Intergenerational ContextGuide to the LiteratureFood for Thought Chapter 3. Externalities and Nonmarket Valuation 3.1 Cost Function Approach 3.2 Expenditure Function 3.2.1 Hedonic Pricing 3.2.2 Recreation Demand and the Travel Cost Method 3.3 Contingent Methods or Direct Approaches 3.3.1 Contingent Valuation Method 3.3.2 Choice Experiments/Stated Preferences 3.3.3 Constructed Preferences/Stakeholder Method 3.3.4 Fuzzy and ad hoc Methods for Determining Nonmarket Values 3.4 Benefit Transfer 3.5 Concluding Discussion Guide to Literature Food for Thought Chapter 4. International Trade and Applied Welfare Analysis 4.1 Spatial Price Equilibrium Trade Modelling 4.2 Unrestricted Free Trade 4.3 Trade and the Measurement of Wellbeing in Multiple Markets 4.3.1 Vertical Chains 4.3.2 Vertical and Horizontal Chains 4.4 Economic Policy and Trade: Examples 4.4.1 EU Import Restrictions on Canadian Durum Wheat 4.4.2 Incentivizing Anti-Dumping and Countervail Duty Complaints: Byrd Amendment 4.4.3 Restricting Log Exports 4.5 Concluding Discussion Appendix 4.A: Mathematics of Supply Restrictions Appendix 4.B: Calculation of Objective Function in SPE Models Guide to LiteratureFood for Thought Chapter 5. Governance, Rent-Seeking, Global Trade and the Agreement on Agriculture 5.1 Institutions and Governance 5.1.1 Models of Government 5.1.2 Takings 5.1.3 Institutions 5.1.4 Financing Government and Public Projects 5.2 Land Use and the Principal-Agent Problem 5.3 International Trade Negotiations and Agriculture 5.3.1 Agreement on Agriculture 5.3.2 Agreement on Subsidies and Countervail Measures 5.4 Tariff Rate Quota (TRQ) 5.5 Concluding Discussion Guide to Literature Food for Thought Chapter 6. Analysis of Agricultural Policy: Theory6.1 Background to Analysis of Agricultural Policy 6.2 Stock-Holding Buffer Fund Stabilization 6.3 Quotas and Supply-Restricting Marketing Boards 6.3.1 Quota and General Equilibrium Welfare Measurement 6.3.2 Quota Buyouts 6.3.3 Designing and Dismantling a Multi-Region Quota Program 6.4 Price Discrimination 6.5 Agricultural Technology: Genetically Modified Organisms 6.5.1 Agricultural Research and Development 6.5.2 Genetically Modified Organisms 6.6 Measuring Externalities in Agriculture 6.7 Concluding Discussion Guide to Literature Food for Thought Chapter 7. Agricultural Policies in the U.S. and Canada7.1 Agricultural Support: A Brief Overview 7.2 U.S. Agricultural Policy 7.2.1 Analysis of U.S. Price Support Programs 7.2.2 Reducing Production and Disposing of Excess Grain 7.2.3 Decoupling 7.2.4 Moving Forward 7.3 Canadian Agricultural Policy 7.3.1 State Trading: The Canadian Wheat Board (1935-2012) 7.3.2 Crop Insurance 7.3.3 Western Grain Stabilization Act (1976) 7.3.4 Transportation Programs and Subsidies 7.3.5 Supply Management 7.5 Concluding Discussion Guide to Literature Food for Thought Chapter 8. Agricultural Policy in Europe and Asia8.1 Agricultural Policy Reform in the European Union 8.1.1 Background to the European Union 8.1.2 High and Increasing Costs of Agricultural Programs 8.1.3 Integration of New Members 8.1.4 Reform of the CAP and Increasing Environmental Concerns 8.1.5 Further Analysis of Sector-Level Programs 8.1.6 Brexit 8.2 Agriculture in Developing Countries 8.2.1 Economy-wide Economic Reform and Chinese Agriculture 8.2.2 India and the Rice Economy Guide to Literature Food for Thought Chapter 9. Agricultural Business Risk Management 9.1 Privatizing Agricultural Hedges: Financial Products versus Insurance 9.1.1 Index Insurance and Derivatives 9.1.2 Futures Trading and Options 9.2 Agricultural Business Risk Management in the United States 9.2.1 Deep Loss Protection: The Federal Crop Insurance Program 9.2.2 Agricultural Business Risk Management Programs in the 2008 Farm Bill 9.2.3 Agricultural Business Risk Programs in the 2014 and 2018 Farm Bills 9.2.4 Dairy 9.2.5 Trade Issues 9.3 Agricultural Business Risk Management in Canada 9.3.1 The Shift from Price Support to Risk Management 9.3.2 Enter Growing Forward 9.3.3 Shift from Growing Forward (GF) to Growing Forward 2 (GF2) 9.3.4 Evaluation of Canada’s Agricultural Business Risk Programs 9.3.5 Going Forward: Canadian Agricultural Partnership 9.4 Concluding Discussion: Lessons for Agricultural Business Risk Management 9.4.1 Do Agricultural BRM Programs Distort Production? 9.4.2 Comparison of U.S. and Canadian Approaches to Risk Management Appendix 9.A: A Brief Look at the Economics of Risk and Risk Aversion 9.A.1 Systemic versus Idiosyncratic Risk 9.A.2 Expected Income Maximization and the Risk Aversion Coefficient Guide to Literature Food for Thought Chapter 10. Climate Change and Applied Welfare Economics 10.1 Anthropogenic Climate Change and its Impact 10.1.1 Climate Sensitivity 10.1.2 Damages 10.2 Economic Evaluation: The Role of Integrated Assessment Models 10.2.1 Climate Models and Policy Models 10.2.2 Carbon Price Policy Variable 10.3 Economic Impacts of Climate Change on Agriculture 10.3.1 Land Rents and the Regression Approach 10.3.2 Mathematical Representation of Landowner Decisions 10.4 Climate Change and Food Security 10.5 Discounting and Climate Urgency 10.5.1 Discounting Carbon 10.5.2 Economics of Wood Biomass Energy: Climate Urgency and Discounting 10.6 Mitigating Climate Change 10.6.1 International Action to Mitigate Climate Change 10.6.2 Agricultural Role in Mitigating Climate Change 10.6.3 Managing for Carbon: Carbon Pools and Fossil Fuel Substitution 10.7 Discussion Guide to LiteratureFood for Thought References

G. Cornelis Van Kooten is a professor of Economics and Canada Research Chair in Environmental Studies and Climate at the University of Victoria.

• List of TablesList of FiguresList of AcronymsChapter 1. Introduction 1.1 Setting the Agricultural Stage 1.1.1 Top Agricultural Commodity Producers 1.1.2 Food Security: Green Revolution and Crop Yields 1.2 Structure of the Book Guide to Literature Chapter 2. Project Evaluation Criteria 2.1 Private Financial Analysis 2.1.1 Financial Ranking Criteria 2.1.2 Conclusion 2.2 Society’s Perspective: Social Cost-Benefit Analysis 2.2.1 Benefits and Costs as Rent and Surplus 2.2.2 The Fundamental Equation of Applied Welfare Economics 2.2.3 Total Economic Value 2.2.4 Total (Average) Value Versus Marginal Value 2.2.5 Conclusion 2.3 Multiple Accounts and Alternative Criteria 2.3.1 Environmental Quality 2.3.2 Regional Economic Development and Employment: Indirect Benefits 2.3.3 Other Social Effects 2.3.4 Concluding Observations about Multiple Accounts 2.4 Alternative Methods for Evaluating Projects 2.4.1 Cost-Effectiveness Analysis 2.4.2 Multiple Criteria Decision Making 2.4.3 Life-Cycle Assessment 2.4.4 Cumulative Effects Analysis 2.5 Extreme Events and Irreversibility 2.6 Discounting and Choice of Discount Rate 2.6.1 Dilemmas in Choosing a Discount Rate in Cost-Benefit Analysis 2.6.2 Risk Adjusted Discount Rates 2.6.3 Discounting in an Intergenerational ContextGuide to the LiteratureFood for Thought Chapter 3. Externalities and Nonmarket Valuation 3.1 Cost Function Approach 3.2 Expenditure Function 3.2.1 Hedonic Pricing 3.2.2 Recreation Demand and the Travel Cost Method 3.3 Contingent Methods or Direct Approaches 3.3.1 Contingent Valuation Method 3.3.2 Choice Experiments/Stated Preferences 3.3.3 Constructed Preferences/Stakeholder Method 3.3.4 Fuzzy and ad hoc Methods for Determining Nonmarket Values 3.4 Benefit Transfer 3.5 Concluding Discussion Guide to Literature Food for Thought Chapter 4. International Trade and Applied Welfare Analysis 4.1 Spatial Price Equilibrium Trade Modelling 4.2 Unrestricted Free Trade 4.3 Trade and the Measurement of Wellbeing in Multiple Markets 4.3.1 Vertical Chains 4.3.2 Vertical and Horizontal Chains 4.4 Economic Policy and Trade: Examples 4.4.1 EU Import Restrictions on Canadian Durum Wheat 4.4.2 Incentivizing Anti-Dumping and Countervail Duty Complaints: Byrd Amendment 4.4.3 Restricting Log Exports 4.5 Concluding Discussion Appendix 4.A: Mathematics of Supply Restrictions Appendix 4.B: Calculation of Objective Function in SPE Models Guide to LiteratureFood for Thought Chapter 5. Governance, Rent-Seeking, Global Trade and the Agreement on Agriculture 5.1 Institutions and Governance 5.1.1 Models of Government 5.1.2 Takings 5.1.3 Institutions 5.1.4 Financing Government and Public Projects 5.2 Land Use and the Principal-Agent Problem 5.3 International Trade Negotiations and Agriculture 5.3.1 Agreement on Agriculture 5.3.2 Agreement on Subsidies and Countervail Measures 5.4 Tariff Rate Quota (TRQ) 5.5 Concluding Discussion Guide to Literature Food for Thought Chapter 6. Analysis of Agricultural Policy: Theory6.1 Background to Analysis of Agricultural Policy 6.2 Stock-Holding Buffer Fund Stabilization 6.3 Quotas and Supply-Restricting Marketing Boards 6.3.1 Quota and General Equilibrium Welfare Measurement 6.3.2 Quota Buyouts 6.3.3 Designing and Dismantling a Multi-Region Quota Program 6.4 Price Discrimination 6.5 Agricultural Technology: Genetically Modified Organisms 6.5.1 Agricultural Research and Development 6.5.2 Genetically Modified Organisms 6.6 Measuring Externalities in Agriculture 6.7 Concluding Discussion Guide to Literature Food for Thought Chapter 7. Agricultural Policies in the U.S. and Canada7.1 Agricultural Support: A Brief Overview 7.2 U.S. Agricultural Policy 7.2.1 Analysis of U.S. Price Support Programs 7.2.2 Reducing Production and Disposing of Excess Grain 7.2.3 Decoupling 7.2.4 Moving Forward 7.3 Canadian Agricultural Policy 7.3.1 State Trading: The Canadian Wheat Board (1935-2012) 7.3.2 Crop Insurance 7.3.3 Western Grain Stabilization Act (1976) 7.3.4 Transportation Programs and Subsidies 7.3.5 Supply Management 7.5 Concluding Discussion Guide to Literature Food for Thought Chapter 8. Agricultural Policy in Europe and Asia8.1 Agricultural Policy Reform in the European Union 8.1.1 Background to the European Union 8.1.2 High and Increasing Costs of Agricultural Programs 8.1.3 Integration of New Members 8.1.4 Reform of the CAP and Increasing Environmental Concerns 8.1.5 Further Analysis of Sector-Level Programs 8.1.6 Brexit 8.2 Agriculture in Developing Countries 8.2.1 Economy-wide Economic Reform and Chinese Agriculture 8.2.2 India and the Rice Economy Guide to Literature Food for Thought Chapter 9. Agricultural Business Risk Management 9.1 Privatizing Agricultural Hedges: Financial Products versus Insurance 9.1.1 Index Insurance and Derivatives 9.1.2 Futures Trading and Options 9.2 Agricultural Business Risk Management in the United States 9.2.1 Deep Loss Protection: The Federal Crop Insurance Program 9.2.2 Agricultural Business Risk Management Programs in the 2008 Farm Bill 9.2.3 Agricultural Business Risk Programs in the 2014 and 2018 Farm Bills 9.2.4 Dairy 9.2.5 Trade Issues 9.3 Agricultural Business Risk Management in Canada 9.3.1 The Shift from Price Support to Risk Management 9.3.2 Enter Growing Forward 9.3.3 Shift from Growing Forward (GF) to Growing Forward 2 (GF2) 9.3.4 Evaluation of Canada’s Agricultural Business Risk Programs 9.3.5 Going Forward: Canadian Agricultural Partnership 9.4 Concluding Discussion: Lessons for Agricultural Business Risk Management 9.4.1 Do Agricultural BRM Programs Distort Production? 9.4.2 Comparison of U.S. and Canadian Approaches to Risk Management Appendix 9.A: A Brief Look at the Economics of Risk and Risk Aversion 9.A.1 Systemic versus Idiosyncratic Risk 9.A.2 Expected Income Maximization and the Risk Aversion Coefficient Guide to Literature Food for Thought Chapter 10. Climate Change and Applied Welfare Economics 10.1 Anthropogenic Climate Change and its Impact 10.1.1 Climate Sensitivity 10.1.2 Damages 10.2 Economic Evaluation: The Role of Integrated Assessment Models 10.2.1 Climate Models and Policy Models 10.2.2 Carbon Price Policy Variable 10.3 Economic Impacts of Climate Change on Agriculture 10.3.1 Land Rents and the Regression Approach 10.3.2 Mathematical Representation of Landowner Decisions 10.4 Climate Change and Food Security 10.5 Discounting and Climate Urgency 10.5.1 Discounting Carbon 10.5.2 Economics of Wood Biomass Energy: Climate Urgency and Discounting 10.6 Mitigating Climate Change 10.6.1 International Action to Mitigate Climate Change 10.6.2 Agricultural Role in Mitigating Climate Change 10.6.3 Managing for Carbon: Carbon Pools and Fossil Fuel Substitution 10.7 Discussion Guide to LiteratureFood for Thought References