Maximization of a social welfare function which has the value, pricewise, of the public utility provided by the forests as one of the variables

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  • EJIRI Y.
    Fac. of Sci. and Eng., Iwaki Meisei Univ.

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  • 森林の公益的機能を変数に含む社会的厚生関数の最大化
  • シンリン ノ コウエキテキ キノウ オ ヘンスウ ニ フクム シャカイテキ コ

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Abstract

A social welfare function has been defined as a function of the two variables, that is, the disposable national income and the value, pricewise, of the total public utility provided annually by the whole forests in Japan. Then the amount of the subsidies for the sector of forestry which maximizes this social welfare function has been estimated. These subsidies are to be covered by a tax for its own purpose, on the assumption of a balanced budget. At first, it has been considered that how the optimal rotations adopted by the producers change as the amount of the subsidies for the forests, which is granted in proportion to the amount of the public utility provided by the each stand, changes. It has been also considered that how this total public utility increases by this change of the optimal rotations. Then, the relation between the whole amount of the subsidies and the increment of this total public utility, pricewise, has been considered. Lastly, using this relation and the multiplier of tax-subsidy for the disposable national income, the amount of a taxization which maximizes this social welfare function has been estimated. Conclusions are as follows. The optimal amount of a taxization has been estimated at about 0.92.6 trillion yen/year (about 0.30.8% of national income at 1989 year) when this total public utility is appraised at 39 trillion yen/year.

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