Multifunctional Agriculture: The Effect of Non-Public Goods on Socially Optimal Policies
| dc.creator | Ollikainen, Markku | |
| dc.creator | Lankoski, Jussi E. | |
| dc.date | 2017-04-01T14:09:12Z | |
| dc.date.accessioned | 2026-07-09T03:47:53Z | |
| dc.description | We develop a general framework for multifunctional agriculture, which includes not only public goods but also rural viability as a non-public good item. We contribute to the literature in two ways. First, we demonstrate how the broader definition of multifunctional agriculture differs from the agri-environmental multifunctionality, and how agri-environmental policy should be reformed to include these aspects. We show that rural viability entails adjusting fertilizer tax and buffer strip subsidy below their first-best Pigouvian levels to reflect the direct and indirect employment effects of agricultural production. Moreover, we show that when non-agricultural land use is present, an additional, non-agricultural instrument is needed to adjust the amount of land allocated to agriculture to its optimal level. In a parametric model calibrated to Finnish agricultural conditions and Finnish valuation of agri-environmental amenities and rural viability, we assess how the socially optimal provision of non-public good multifunctionality relates the socially optimal agri-environmental multifunctionality. | |
| dc.identifier | doi:10.22004/ag.econ.24611 | |
| dc.identifier | https://ageconsearch.umn.edu/record/24611/files/cp05ol02.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/24611 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/540032 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/24611 | |
| dc.title | Multifunctional Agriculture: The Effect of Non-Public Goods on Socially Optimal Policies | |
| dc.type | Text |