There is growing the importance of the concept of multifunctionality of agriculture both in the Czech Republic and in the whole European Union. Multifunctionality reflects the fact, that agriculture produces many food and non-food commodities, while some of them have the character of externalities and public goods. The methodological framework for analysis of extra-production benefits of agriculture must include both production relationships between commodity and non-commodity products and the view on multifunctional agriculture from the demand side, e.g. it must consider the solution of externalities and public goods. This article is dealing with joint production, e.g. with the supply side view on multifunctional agriculture. Presented are the possible methodological approaches to optimisation of joint production in agriculture if commodities are produced in fixed proportions, the possibility, that non-commodity product is provided in fixed amount and finally the possibility, that joint production may be realised with variable proportions of individual products. However, to assess multifunctionality of agriculture, it is necessary to analyse not only production relationships between commodities and non-commodity outputs, but also externalities and public goods connected with this production must be valuated.
The Green Paradox: A Supply-Side View of the Climate Problem