Optimal taxation with joint production of agriculture and rural amenities
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.
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- Ollikainen, Markku & Lankoski, Jussi E., 2005.
"Multifunctional agriculture: The effect of non-public good on socially optimal policies,"
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