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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

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.

  • joint production,
  • rural amenities
Publication Date
Citation Information
Georges Casamatta, Gordon Rausser and Leo Simon. "Optimal taxation with joint production of agriculture and rural amenities" Resource and Energy Economics (2011)
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