The Social Value of Biodiversity for R&D
AbstractThe value of genetic resources for use in research and development (R&D)activities has been the subject of a literature modelling the activity as onewhere individual firms engage in optimal search. Here we develop a moregeneralised framework in which genetic resources are used in R&D at thebase of an industry that addresses recurring problems of resistance, as inthe pharmaceutical or plant breeding industries. The R&D process is onein which firms are engaging in a continuing contest of innovation againsta background of both creative destruction (Schumpeterian competition) andadaptive destruction (natural selection and adaptation). This frameworkdemonstrates that the search model is conceptually inadequate because itfails to incorporate the important dynamic characteristics of biologicalphenomena. We then demonstrate the important differences between firm-based valuation of genetic resources and the social value of geneticresources for use in this contest of innovation. There are six externalitiesin private patent-based genetic resource valuation, and five of theseindicate that private valuations will under-estimate social values. Copyright Kluwer Academic Publishers 2002
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 22 (2002)
Issue (Month): 4 (August)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100263
biodiversity; genetic resources; research and development;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Amy Craft & R. Simpson, 2001. "The Value of Biodiversity in Pharmaceutical Research with Differentiated Products," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(1), pages 1-17, January.
- Aghion, P. & Howitt, P., 1989.
"A Model Of Growth Through Creative Destruction,"
527, Massachusetts Institute of Technology (MIT), Department of Economics.
- Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
- Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," UWO Department of Economics Working Papers 8904, University of Western Ontario, Department of Economics.
- Barrett, Scott, 1992. "Economic growth and environmental preservation," Journal of Environmental Economics and Management, Elsevier, vol. 23(3), pages 289-300, November.
- Lans Bovenberg, A. & Smulders, Sjak, 1995.
"Environmental quality and pollution-augmenting technological change in a two-sector endogenous growth model,"
Journal of Public Economics,
Elsevier, vol. 57(3), pages 369-391, July.
- Smulders, J.A., 1995. "Environmental quality and pollution-augmenting technological change in a two-sector endogenous growth model," Open Access publications from Tilburg University urn:nbn:nl:ui:12-153411, Tilburg University.
- Martin L. Weitzman, 2000.
"Economic Profitability Versus Ecological Entropy,"
The Quarterly Journal of Economics,
MIT Press, vol. 115(1), pages 237-263, February.
- Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
- Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
- Simpson, R David & Sedjo, Roger A & Reid, John W, 1996. "Valuing Biodiversity for Use in Pharmaceutical Research," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 163-85, February.
- Mason, Robin & Swanson, Timothy, 2002. "The costs of uncoordinated regulation," European Economic Review, Elsevier, vol. 46(1), pages 143-167, January.
- Sedjo, Roger & Simpson, R. David, 1996. "Valuation of Biodiversity for Use in New Product Research in a Model of Sequential Search," Discussion Papers dp-96-27, Resources For the Future.
- Sarr, Mare & Goeschl, Timo & Swanson, Tim, 2008. "The value of conserving genetic resources for R&D: A survey," Ecological Economics, Elsevier, vol. 67(2), pages 184-193, September.
- Gatti, J.R.J. & Goeschl, T. & Groom, B. & Timothy Swanson, 2004.
"The Biodiversity Bargaining Problem,"
Cambridge Working Papers in Economics
0447, Faculty of Economics, University of Cambridge.
- Ilhem Kassar & Pierre Lasserre, 2002.
"Species Preservation and Biodiversity Value: A Real Options Approach,"
CIRANO Working Papers
- Kassar, Ilhem & Lasserre, Pierre, 2004. "Species preservation and biodiversity value: a real options approach," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 857-879, September.
- Ilhem Kassar & Pierre Lasserre, 2002. "Species Preservation and Biodiversity Value: A Real Options Approach," Cahiers de recherche du DÃ©partement des sciences Ã©conomiques, UQAM 20-18, Université du Québec à Montréal, Département des sciences économiques.
- Christian Groth & Francesco Ricci, 2009.
"Optimal Growth when Environmental Quality is a Research Asset,"
EPRU Working Paper Series
2009-11, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Groth, Christian & Ricci, Francesco, 2011. "Optimal growth when environmental quality is a research asset," Research in Economics, Elsevier, vol. 65(4), pages 340-352, December.
- Groth, Christian & Ricci, Francesco, 2010. "Optimal growth when environmental quality is a research asset," TSE Working Papers 10-214, Toulouse School of Economics (TSE).
- Groth, Christian & Ricci, Francesco, 2010. "Optimal growth when environmental quality is a research asset," LERNA Working Papers 10.27.333, LERNA, University of Toulouse.
- Tim Swanson & Ben Groom, 2012.
"Regulating Global Biodiversity: What is the Problem?,"
2012.31, Fondazione Eni Enrico Mattei.
- Tim Swanson & Ben Groom, 2012. "Regulating global biodiversity: what is the problem?," Oxford Review of Economic Policy, Oxford University Press, vol. 28(1), pages 114-138, Spring.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.