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Introducing Genetically Modified Plants: Now or Later - An Option Value Approach

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  • Romstad, Eirik
  • Brimi, Live
  • Ljorerud, Urda

Abstract

Using market data, we have estimated the quasi option value of delaying to grow genetically modified corn and soybeans in Europe. We find that the current quasi option value of growing genetically modified soybeans and corn in Europe is high. This makes it likely that for the time being the information value of waiting exceeds the market gains of growing genetically modified plants in Europe.

Suggested Citation

  • Romstad, Eirik & Brimi, Live & Ljorerud, Urda, 2005. "Introducing Genetically Modified Plants: Now or Later - An Option Value Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24655, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24655
    DOI: 10.22004/ag.econ.24655
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    References listed on IDEAS

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    5. Charles Perrings, 1997. "Economics of Ecological Resources," Books, Edward Elgar Publishing, number 1153.
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