Summary Innovation requires investments in their creation. One important aspect is the need for clear, consistent, predictable and fair regulatory systems that will yield decisions in a timely manner. The introduction of uncertainty in regulatory processes will increase the uncertainty of investment returns and thus the possibility that the investor may reconsider making such investments. In the paper we estimate rates of return to investments in biotech crops based on a set of plausible assumptions. We increased the start time for the production of benefits to investors in order to examine their impact on returns to investment. We discuss the specific cases of crops produced advanced plant techniques being in use now or those who are likely to be introduced in the near future. Our approach follows a procedure in the financial literature that considers the value of investments and the possibility of choosing other options. This approach allows us to discuss how and under what conditions regulatory uncertainty can have an impact on investment.
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Key conclusions
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Citation Smyth S.J., McDonald J., Falck-Zepeda J.B. Investment, regulation, and uncertainty: Managing new plant breeding techniques. GM Crops and Food: Biotechnology in Agriculture and the Food Chain 2014; 5:4 – 3; http://dx.doi.org/10.4161/gmcr.27465 |
Article snapshot: “Investment, regulation, and uncertainty: Managing new plant breeding techniques.”
31 Friday Jan 2014