Resistance Economics of Transgenic Crops under Uncertainty: A Real Option Approach

Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

Abstract

The development of pest resistance is one of the many concerns about the long-term success of transgenic crops. This chapter discusses resistances as additional irreversible costs related to the release of transgenic crops. These irreversible costs, their uncertainty, and the uncertainty about future direct benefits result in a real option value favoring a delay in the release of transgenie crops. This is a result well known in real option theory but ignored in most of the cost-benefit studies on transgenic crops
Original languageEnglish
Title of host publicationBattling Resistance to Antibiotics and Pesticides. An economic approach
EditorsR. Laxminarayan
Place of PublicationWashington DC
Pages214-237
Number of pages23
Publication statusPublished - 2003

Publication series

NameResources for the Future
PublisherRFF Press

Keywords

  • transgenic plants
  • disease resistance
  • costs
  • cost benefit analysis
  • economic analysis

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