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Biodiversity versus transgenic sugar beet: the one euro question

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Author Info
Eric Tollens

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Abstract

The decision on whether to release transgenic crops in the EU is subject to irreversibility, uncertainty and flexibility. We analyse the case of herbicide-tolerant sugar beet and assess whether the EU's 1998 de facto moratorium on transgenic crops for sugar beet was correct from a cost--benefit perspective, using a real option approach. We show that the decision was correct, providing households on average value the possible annual irreversible costs of herbicide-tolerant sugar beet at €1 or more. On the other hand, the total net private reversible benefits forgone if the de facto moratorium is not lifted are around €169 million per year. Copyright 2004, Oxford University Press.

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Publisher Info
Article provided by Oxford University Press for the Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 31 (2004)
Issue (Month): 1 (March)
Pages: 1-18
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Handle: RePEc:oup:erevae:v:31:y:2004:i:1:p:1-18

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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.:
  1. Falck-Zepeda, Jose Benjamin & Traxler, Greg & Nelson, Robert G, 2000. " Surplus Distribution from the Introduction of a Biotechnology Innovation," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(2), pages 360-69, May. [Downloadable!] (restricted)
  2. Fernandez-Cornejo, Jorge & McBride, William D., 2002. "Adoption Of Bioengineered Crops," Agricultural Economics Reports 33957, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  3. Pretty, J. N. & Brett, C. & Gee, D. & Hine, R. E. & Mason, C. F. & Morison, J. I. L. & Raven, H. & Rayment, M. D. & van der Bijl, G., 2000. "An assessment of the total external costs of UK agriculture," Agricultural Systems, Elsevier, vol. 65(2), pages 113-136, August. [Downloadable!] (restricted)
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  1. Robert D. Weaver & Justus Wessler, 2004. "Monopolistic pricing power for transgenic crops when technology adopters face irreversible benefits and costs," Applied Economics Letters, Taylor and Francis Journals, vol. 11(15), pages 969-973, December. [Downloadable!] (restricted)
  2. Beckmann, Volker & Soregaroli, Claudio & Wesseler, Justus, 2006. "Governing the Co-existence of GM Crops: Ex-Ante Regulation and Ex-Post Liability under Uncertainty and Irreversibility," Institutional Change in Agriculture and Natural Resources Discussion Papers 18845, Humboldt University Berlin, Institute for Agricultural Economic and Social Sciences. [Downloadable!]
    Other versions:
  3. Tollens, Eric, 2002. "Food Security In Kinshasa, Coping With Adversity," Working Papers 31848, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics. [Downloadable!]
  4. Demont, Matty & Jouve, Philippe & Stessens, Johan & Tollens, Eric, 2000. "The Evolution Of Farming Systems In Northern Cote D'Ivoire: Boserup Versus Malthus And Competition Versus Complementarity," Working Papers 31846, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics. [Downloadable!]
  5. Tollens, Eric, 2003. "Current Situation Of Food Security In The D.R. Congo: Diagnostic And Perspectives," Working Papers 31853, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics. [Downloadable!]
  6. Tollens, Eric & Demont, Matty & Swennen, Rony, 2003. "Agrobiotechnology In Developing Countries: North-South Partnerships Are A Key," Working Papers 31837, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics. [Downloadable!]
  7. Tollens, Eric, 2002. "The Challenges Of Poverty Reduction With Particular Reference To Rural Poverty And Agriculture In Sub-Saharan Africa," Working Papers 31850, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics. [Downloadable!]
  8. Tollens, Eric, 2003. "Poverty And Livelihood Entitlement, How It Relates To Agriculture," Working Papers 31856, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics. [Downloadable!]
  9. Jan Lepoutre & Nikolay Dentchev & Aimé Heene, 2007. "Dealing With Uncertainties When Governing CSR Policies," Journal of Business Ethics, Springer, vol. 73(4), pages 391-408, July. [Downloadable!] (restricted)
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  10. Scatasta, Sara & Wesseler, Justus & Demont, Matty, 2005. "Irreversibility, Uncertainty and the Adoption of Transgenic Crops: the Case of BT-Maize in France," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24758, European Association of Agricultural Economists. [Downloadable!]
  11. GianCarlo Moschini & Harun Bulut & Luigi Cembalo, 2005. "On the Segregation of Genetically Modified, Conventional, and Organic Products in European Agriculture: A Multi-market Equilibrium Analysis," Center for Agricultural and Rural Development (CARD) Publications 05-wp411, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
    Other versions:
  12. Tollens, Eric, 2002. "Market Information Systems In Liberalized African Export Commodity Markets: The Case Of Cocoa And Coffee In Cote D'Ivoire, Nigeria And Cameroon," Working Papers 31860, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics. [Downloadable!]
  13. Falck-Zepeda, José & Kilkuwe, Enoch & Wesseler, Justus, 2008. "Introducing a genetically modified banana in Uganda: Social benefits, costs, and consumer perceptions," IFPRI discussion papers 767, International Food Policy Research Institute (IFPRI). [Downloadable!]
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