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Bioprospecting and biodiversity contracts

Author

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  • Mulholland, Denise M.
  • Wilman, Elizabeth A.

Abstract

A dynamic economic model for a biodiversity prospecting contract, between a host country and a pharmaceutical company, is developed and used to explain the structure of existing contracts. The host country's stocks of biodiversity and genetic information are crucial inputs to the production of high-quality samples. Even with compete property rights contracts will be second best; it is not possible to perfectly monitor host-country inputs to the drug discovery process. Contracts vary due to the different degrees of observability of host-country inputs, and incomplete or ineffective property rights.

Suggested Citation

  • Mulholland, Denise M. & Wilman, Elizabeth A., 2003. "Bioprospecting and biodiversity contracts," Environment and Development Economics, Cambridge University Press, vol. 8(3), pages 417-435, July.
    • Handle: RePEc:cup:endeec:v:8:y:2003:i:03:p:417-435_00
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    Cited by:

    1. Amitrajeet A. Batabyal & Peter Nijkamp, 2013. "Biodiversity Prospecting over Time and under Uncertainty: A Theory of Sorts," Tinbergen Institute Discussion Papers 13-163/VIII, Tinbergen Institute.
    2. Ding, Helen & Nunes, Paulo A.L.D. & Onofri, Laura, 2007. "An Economic Model for Bioprospecting Contracts," Sustainability Indicators and Environmental Valuation Working Papers 7450, Fondazione Eni Enrico Mattei (FEEM).

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