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Conserving Biodiversity by Commercialization? A Model Framework for a Market for Genetic Resources

  • Oliver Deke

Since naturally occurring genetic information serves as a valuable input for biotechnological R&D, the private provision of genetic resources could generate income for the protection of biodiversity-rich areas. However, there has been a controversy over whether these potential revenues are sufficient to compensate for the costs of protection and, therefore, whether markets for genetic resources can effectively contribute to the conservation of biodiversity. In this paper, a market framework is developed to describe possible market outcomes, each with a different impact on conservation. It turns out that the market-induced incentives to conserve depend on the specific situation on the supply and demand side of the market.

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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1054.

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Length: 33 pages
Date of creation: Jun 2001
Date of revision:
Handle: RePEc:kie:kieliw:1054
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  1. Edward Barbier & Bruce Aylward, 1996. "Capturing the pharmaceutical value of biodiversity in a developing country," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 8(2), pages 157-181, September.
  2. Rausser, Gordon C. & Small, Arthur A., 2000. "Valuing Research Leads: Bioprospecting and the Conservation of Genetic Resources," Berkeley Olin Program in Law & Economics, Working Paper Series qt4t56m5b8, Berkeley Olin Program in Law & Economics.
  3. Dixit, Avinash K & Stiglitz, Joseph E, 1993. "Monopolistic Competition and Optimum Product Diversity: Reply," American Economic Review, American Economic Association, vol. 83(1), pages 302-04, March.
  4. Heal, G.M., 1995. "Markets and Biodiversity," Papers 95-17, Columbia - Graduate School of Business.
  5. Barrett, Christopher B. & Lybbert, Travis J., 1999. "Is Bioprospecting A Viable Strategy for Conserving Tropical Ecosystems?," Working Papers 127695, Cornell University, Department of Applied Economics and Management.
  6. Mendelsohn, Robert, 1994. "Property Rights and Tropical Deforestation," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 750-56, Supplemen.
  7. Rausser, G.C. & Small. A.A., 1998. "Bioprospecting with Patent Races," Papers 98-07, Columbia - Graduate School of Business.
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