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Article
Optimal taxation with joint production of agriculture and rural amenities
Resource and Energy Economics (2011)
  • Georges Casamatta, Toulouse School of Economics
  • Gordon Rausser, University of California, Berkeley
  • Leo Simon, University of California, Berkeley
Abstract

We show that, when there is joint production of an agricultural good and rural amenities, the first-best allocation of resources can be implemented with a tax on the agricultural good and some subsidies on the production factors (land and labor). The use of a subsidy on the agricultural good can only be explained by the desire of the policymaker to redistribute income from the consumers to the farmers.

Keywords
  • joint production,
  • rural amenities
Disciplines
Publication Date
2011
Citation Information
Georges Casamatta, Gordon Rausser and Leo Simon. "Optimal taxation with joint production of agriculture and rural amenities" Resource and Energy Economics (2011)
Available at: http://works.bepress.com/georges_casamatta/13/