Given the existence of transaction costs,the location of property rights is an important factor in determining the incentives for efficient levels of investment at various levels of the industry.This paper applies some of the economic theories of property rights and industrial structure to the issues concerning the conservation of biodiversity.Although the expansion of Intellectual Property Rights (IPR) systems into the area of genetic resources has increased private investment in R&D process of the agriculture,it does not generate enough incentives for in situ conservation of biodiversity.To solve this economic inefficiency,farmers'rights and other design of incentives and institutional arrangement should be reconsidered.
