The economics of managing evolution.

Area of Science:

• Evolutionary biology
• Ecological economics
• Agricultural science

Background:

• Human activities are accelerating evolutionary changes, notably the rise of pesticide and antibiotic resistance.
• Effective management strategies exist to mitigate these evolutionary impacts.

Purpose of the Study:

• To determine the economic conditions under which investing in evolution management is beneficial for decision-makers.
• To analyze the economic incentives for managing evolutionary processes.

Main Methods:

• Derivation of a dimensionless inequality to assess cost-effectiveness.
• Economic modeling of individual and multiple decision-makers' investment choices.
• Analysis of regulatory interventions on investment decisions.

Main Results:

• Cost-effectiveness is achieved when the percentage increase in resource lifespan from management exceeds the percentage increase in annual profit from non-management.
• The inequality provides a framework for optimal and Nash equilibrium investment strategies.
• Examples with Bacillus thuringiensis (Bt) crops and antibiotic use in fish farming illustrate the findings.

Conclusions:

• Economic principles can guide the strategic management of evolution.
• Investment in evolution management is justifiable when long-term resource viability is prioritized over short-term profit gains.
• The derived inequality offers a practical tool for evaluating management investments in various biological systems.