Designing satellites to cope with orbital debris

Julien Guyot and Sébastien Rouillon

Bordeaux Economics Working Papers from Bordeaux School of Economics (BSE)

Abstract: This paper extends the analysis initiated by Rouillon (2020) of the externality caused by the accumulation of space debris. In addition to the rate of launches, satellite operators make design choices concerning the durability of their satellites. Focusing on the long-term equilibrium of the orbital environment, we com-pare two typical management regimes. The physico-economic equilibrium occurs under open-access to the orbit. The optimal policy maximizes the present value profit of the space sector. We then investigate which set of economic instruments can be used to regulate space activity in order to implement a socially optimal outcome. We show that the combination of a launch tax and a residence time charge can provide the right incentives. Finally, we give two extensions, dealing with de-orbit maneuvers and large debris removal. All results are illustrated based on a numerical application using a realistic calibration.

Keywords: Space economics; Orbital debris; Sustainability (search for similar items in EconPapers)
JEL-codes: L1 L9 Q2 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-env and nep-isf
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:grt:bdxewp:2021-16

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