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Property Rights on Biodiversity and the Pharmaceutical Industry

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  • Chichilnisky, Graciela

Abstract

Major pharmaceutical companies such as Smith Kline Beecham, Merck, Glaxo and Lilly, and a score of smaller ones, are developing profitable business opportunities in the world's forest while preserving biodiversity and producing incentives for leaving the forests intact. This case study covers the business relationships between Merck and Co. and In Bio in Costa Rica, and the activities of Shaman Pharmaceuticals in Latin America and Africa. It provides the details, discusses what each party expects from these deals, and explores the connections with securitization and with issues of corporate responsibility towards the environment. The study explains the properties of externalities, which are typical of markets involving environmental assets, and the use of property rights in inducing efficient market solutions and corporate social responsibility.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8330.

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Date of creation: 1993
Date of revision:
Handle: RePEc:pra:mprapa:8330

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Related research

Keywords: biodiversity; natural resources; case study; pharmaceuticals; developing countries; Central America; Latin America; South America; securitization; environmental assets; property rights; efficiency; market solutions; corporate responsibility; social; environmental; international partnership; financial markets;

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  1. Chichilnisky, Graciela, 1993. "North-South trade and the dynamics of renewable resources," Structural Change and Economic Dynamics, Elsevier, vol. 4(2), pages 219-248, December.
  2. repec:fth:coluec:557 is not listed on IDEAS
  3. repec:fth:coluec:644 is not listed on IDEAS
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