Wesseler, Justus (2009): The Santaniello theorem of irreversible benefits. Published in: AgBioForum , Vol. 1, No. 12 (January 2009): pp. 8-13.
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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.”
|Item Type:||MPRA Paper|
|Original Title:||The Santaniello theorem of irreversible benefits|
|Keywords:||GMOs; irreversible benefits; real option; uncertainty|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q0 - General
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights
|Depositing User:||Justus Wesseler|
|Date Deposited:||08. Sep 2011 13:45|
|Last Modified:||16. Feb 2013 00:59|
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