What is a theoretical basis for a local (prefectural) forest environment tax (FET)? First, in 2, wesurvey the behaviors of the representative prefectures and relevant papers and documents. In 3, we build a simple optimizing model, to get necessary conditions for total welfare maximization of a local market societywithout any government, any tax, or any public expenditure. Then, in 4, we introduce a local government collecting FET and employing goods and labor for the local forest. And, in 4.2, we find that under specific fiscalconditions we can have the same optimal state as one we've got in 3. This can be one primitive basis for FET as is presented in 5.
