Biodiversity versus Transgenic Sugar Beet: The One Euro Question
AbstractThe decision of whether to release transgenic crops in the EU is one subject to flexibility, uncertainty, and irreversibility. We analyse the case of herbicide tolerant sugar beet and reassess whether the 1998 de facto moratorium of the EU 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, if households value possible annual irreversible costs of herbicide tolerant sugar beet with about 1 or more on average. On the other hand, the total net private reversible benefits forgone if the de facto moratorium is not lifted are in the order of 169 Mio per year.
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Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa with number 25831.
Date of creation: 2003
Date of revision:
Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies;
Other versions of this item:
- Eric Tollens, 2004. "Biodiversity versus transgenic sugar beet: the one euro question," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 31(1), pages 1-18, March.
- Demont, Matty & Wesseler, Justus & Tollens, Eric, 2002. "Biodiversity Versus Transgenic Sugar Beet: The One Euro Question," Working Papers 31859, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
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