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Biodiversity Versus Transgenic Sugar Beet: The One Euro Question

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Author Info
Demont, Matty
Wesseler, Justus
Tollens, Eric

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Abstract

The 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 E 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 E per year.

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Paper provided by Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics in its series Working Papers with number 31859.

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Date of creation: 2002
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Handle: RePEc:ags:kucawp:31859

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Web page: http://www.agr.kuleuven.ac.be/aee/clo/clohomee.htm
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Keywords: Research and Development/Tech Change/Emerging Technologies;

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References listed on IDEAS
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. 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:
  2. 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!]
  3. 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!]
  4. 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!]
  5. 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)
  6. 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:
  7. 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!]
  8. 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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  9. 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!]
  10. 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!]
  11. Tollens, Eric, 2002. "Food Security In Kinshasa, Coping With Adversity," Working Papers 31848, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics. [Downloadable!]
  12. 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!]
  13. 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!]
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