Irreversibility, Uncertainty, and the Adoption of Transgenic Crops: Experiences from Applications to HT Sugar Beets, HT Corn, and Bt Corn
Justus Wesseler and
Matty Demont ()
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Sara Scatasta: Wageningen University
Chapter Chapter 16 in Regulating Agricultural Biotechnology: Economics and Policy, 2006, pp 327-352 from Springer
Abstract This study applies a real option approach to quantify, ex-ante, the maximum incremental social tolerable irreversible costs (MISTIC) that would justify immediate adoption of HT and Bt corn in the European Union (EU). The results are compared with previous ones for HT sugar beets. In total, according to our analysis, the BU gives up about €309 million on average per year due to the quasi moratorium on transgenic crops for Bt corn, HT corn, and HT sugar beets alone. On the other hand, the MISTIC per household and year for Bt corn, HT corn, and HT sugar beets is €0.27, €0.46, and €1.10, respectively, or €1.83 for all three crops. The low MISTIC provides a strong economic argument for prohibiting the immediate introduction of the three transgenic crops. The validity of the argument will largely depend on consumer attitudes towards transgenic crops.
Keywords: Bt corn; HT corn; HT sugar beets; real option approach; irreversible social costs (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:spr:nrmchp:978-0-387-36953-2_16
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