The Santaniello theorem of irreversible benefits
Irreversible benefits favor an earlier introduction of GM crops versus a later one. A non-trivial question is if they also weigh more than reversible benefits similar to irreversible costs but in the opposite direction. In this contribution, I will show that indeed irreversible benefits do weigh more than reversible ones and indeed result in an irreversibility effect, albeit a positive one. The problem can be summarized by the following theorem: “Irreversible benefits justify the immediate introduction of transgenic crops, even if future uncertainty about reversible benefits include negative benefits and traditional cost-benefit analysis, and treating all benefits and costs as reversible would reject the introduction.” I call this theorem—in honor of Vittorio Santaniello—the “The Santaniello Theorem of Irreversible Benefits.”
|Date of creation:||Jan 2009|
|Date of revision:|
|Publication status:||Published in AgBioForum 12.1(2009): pp. 8-13|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Myers, Stewart C., 1977. "Determinants of corporate borrowing," Journal of Financial Economics, Elsevier, vol. 5(2), pages 147-175, November.
- Merton, Robert C., 1997.
"Applications of Option-Pricing Theory: Twenty-Five Years Later,"
Nobel Prize in Economics documents
1997-1, Nobel Prize Committee.
- Merton, Robert C, 1998. "Applications of Option-Pricing Theory: Twenty-Five Years Later," American Economic Review, American Economic Association, vol. 88(3), pages 323-49, June.
- 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.
- Demont, Matty & Wesseler, Justus & Tollens, Eric, 2003. "Biodiversity versus Transgenic Sugar Beet: The One Euro Question," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25831, International Association of Agricultural Economists.
- Black, Fischer & Scholes, Myron S, 1973. "The Pricing of Options and Corporate Liabilities," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 637-54, May-June.
- Soregaroli, Claudio & Wesseler, Justus, 2005. "Minimum Distance Requirements and Liability: Implications for Co-Existence," MPRA Paper 33230, University Library of Munich, Germany.
- Pindyck, Robert S., 2000.
"Irreversibilities and the timing of environmental policy,"
Resource and Energy Economics,
Elsevier, vol. 22(3), pages 233-259, July.
- Pindyck, Robert S., 1998. "Irreversibilities and the timing of environmental policy," Working papers WP 4047-98., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Robert C. Merton, 1973. "Theory of Rational Option Pricing," Bell Journal of Economics, The RAND Corporation, vol. 4(1), pages 141-183, Spring.
- McDonald, Robert & Siegel, Daniel, 1986. "The Value of Waiting to Invest," The Quarterly Journal of Economics, MIT Press, vol. 101(4), pages 707-27, November.
- Arrow, Kenneth J & Fisher, Anthony C, 1974. "Environmental Preservation, Uncertainty, and Irreversibility," The Quarterly Journal of Economics, MIT Press, vol. 88(2), pages 312-19, May.
- Henry, Claude, 1974. "Investment Decisions Under Uncertainty: The "Irreversibility Effect."," American Economic Review, American Economic Association, vol. 64(6), pages 1006-12, December.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:25602. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.