Biodiversity versus transgenic sugar beet: the one euro question

The decision on whether to release transgenic crops in the EU is subject to irreversibility, uncertainty and flexibility. We analyse the case of herbicide-tolerant sugar beet and assess whether the EU's 1998 de facto moratorium on transgenic crops for sugar beet was correct from a cost-benefit perspective, using a real option approach. We show that the decision was correct, providing households on average value the possible annual irreversible costs of herbicide-tolerant sugar beet at El or more. On the other hand, the total net private reversible benefits forgone if the de facto moratorium is not lifted are around pound169 million per year.