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Designing satellites to cope with orbital debris

Author

Listed:
  • Julien GUYOT
  • Sébastien ROUILLON

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.

Suggested Citation

  • Julien GUYOT & Sébastien ROUILLON, 2021. "Designing satellites to cope with orbital debris," Bordeaux Economics Working Papers 2021-16, Bordeaux School of Economics (BSE).
    • Handle: RePEc:grt:bdxewp:2021-16
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    File URL: http://bordeauxeconomicswp.u-bordeaux.fr/2021/2021-16.pdf
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    References listed on IDEAS

    as
    1. Adilov, Nodir & Alexander, Peter J. & Cunningham, Brendan M., 2018. "An economic “Kessler Syndrome”: A dynamic model of earth orbit debris," Economics Letters, Elsevier, vol. 166(C), pages 79-82.
    2. Koutchogna Kokou Edem Assogbavi & Stéphane Dées, 2023. "Environmental Policy and the CO2 Emissions Embodied in International Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 507-527, February.
    3. Amara Zongo, 2022. "The effects of restrictive measures on cross‐border investment: Evidence from OECD and emerging countries," The World Economy, Wiley Blackwell, vol. 45(8), pages 2428-2477, August.
    4. Zachary Grzelka & Jeffrey Wagner, 2019. "Managing Satellite Debris in Low-Earth Orbit: Incentivizing Ex Ante Satellite Quality and Ex Post Take-Back Programs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(1), pages 319-336, September.
    5. Sébastien Rouillon, 2020. "A Physico-Economic Model of Low Earth Orbit Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(4), pages 695-723, December.
    6. Victor dos Santos Paulino & Gaël Le Hir, 2016. "Industry structure and disruptive innovations: the satellite industry," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 37-60.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Space economics; Orbital debris; Sustainability;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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