Optimal Taxation With Joint Production of Agriculture and Rural Amenities

Written by: Georges Casamatta, Gordon Rausser and Leo Simon 1 Introduction It is increasingly recognized that agriculture, as well as supplying food and fiber, generates externalities, both positive and negative (Hodge (2000), Harvey (2003), Abler (2003)).[1] The present paper focuses exclusively on positive externalities. These can be classified in at least four categories (Swinbank (2001)): (i) conservation of biological diversity, meaning the numbers species and individuals of flora and fauna;…