Bioprospecting and Biodiversity Contracts

Denise M. Mulholland and Elizabeth Wilman
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Denise M. Mulholland: Office of Policy, Planning and Evaluation, United States Environmental Protection Agency

Working Papers in Ecological Economics from Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program

Abstract: An economic model for a biodiversity prospecting contract, between a developing country and a pharmaceutical company is developed. The theoretical model is compared with observed contracts and those being developed by biodiversity expects. It is found that these contracts roughly reflect the character of the economic model, although due to asymmetric information and risk aversion, the contracts are often second-best.

Date: 1998-10
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Journal Article: Bioprospecting and biodiversity contracts (2003)
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