Valuing New Random GM Traits: The Case of Drought Tolerant Wheat

Sumadhur Shakya, William Wilson and Bruce L. Dahl

No 128033, Agribusiness & Applied Economics Report from North Dakota State University, Department of Agribusiness and Applied Economics

Abstract: There has been an increase in support for developing genetic modification (GM) technology in wheat. The purpose of this paper was to develop an analytical model to analyze the value of GM traits at different phases of development. To do so we developed a stochastic binomial model of real options. The results indicate that the value of drought tolerant wheat using GM technology is in-the-money at each phase of development. The greatest value would accrue to the Prairie Gateway and northern Great Plains regions in the United States.

Keywords: Crop Production/Industries; Productivity Analysis; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 34
Date: 2012-06
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nddaae:128033

DOI: 10.22004/ag.econ.128033

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