Optimal Taxation with Joint Production of Agriculture and Rural Amenities

Gordon Rausser, Leo Simon and Georges Casamatta ()

No 6615, CEPR Discussion Papers from Centre for Economic Policy Research

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 labour). 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 (search for similar items in EconPapers)
JEL-codes: H21 H23 Q10 (search for similar items in EconPapers)
Date: 2007-12
New Economics Papers: this item is included in nep-agr
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Related works:
Journal Article: Optimal taxation with joint production of agriculture and rural amenities (2011)
Working Paper: Optimal taxation with joint production of agriculture and rural amenities (2008)
Working Paper: Optimal taxation with joint production of agriculture and rural amenities
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