Irreversibility, Uncertainty and the Adoption of Transgenic Crops: the Case of BT-Maize in France
AbstractThis study applies a real option approach to quantify, ex-ante, the maximum incremental social tolerable irreversible costs that would justify immediate adoption of Bt maize in France. Based on field trials, we find that incremental private reversible benefits in the agricultural sector are -18 million euro yearly for maize for animal feed and 1 million euro yearly for maize for human consumption. Incremental social irreversible benefits from reduced insecticide use are negligible. The maximum incremental social tolerable irreversible costs are -28 million euro yearly for maize for animal feed and 0.4 million Euro yearly for maize for human consumption.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24758.
Date of creation: 2005
Date of revision:
Bt maize; real option; France; field trials; irreversible social costs; Crop Production/Industries; D6; D8; Q1;
Find related papers by JEL classification:
- D6 - Microeconomics - - Welfare Economics
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
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