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The foundations of the economics of the outer space: A premier overview

Author

Listed:
  • Aneli Bongers

    (Department of Economics, University of Malaga)

  • Benedetto Molinari

    (Department of Economics, University of Malaga and CREA)

  • Sebastien Rouillon

    (Department of Economics, University of Bordeaux)

  • Jose L. Torres

    (Department of Economics, University of Malaga)

Abstract

Although it is probably too early to define a new field of economics named "Economics of Outer Space", the rising importance of outer space for scientific, economic, and social development is beyond discussion. Nowadays, commercial satellites offer various vital services to Earth's consumers at the cost of congesting and polluting space with orbital debris. However, this is just the beginning of history, and several new commercial exploitations of outer space will appear in the future, with the consolidation of an almost autonomous industry in space, further congesting and producing additional market failures. This paper reviews seminal and initial works in this new field on various topics and discusses the connection with existing well-established fields in economics. Human activities in outer space involve several economic and legal issues related to regulation and property rights, congestion, pollution, militarization and weaponization, and exploitation of natural resources. These issues should be addressed as soon as possible to mitigate conflict among spacefaring agents and loss of welfare for humankind. Finally, we suggest future research directions in this promising and highly unexplored area.

Suggested Citation

  • Aneli Bongers & Benedetto Molinari & Sebastien Rouillon & Jose L. Torres, 2024. "The foundations of the economics of the outer space: A premier overview," Space Economics Working Papers 01-2024, Institute for Space Economics, revised Aug 2024.
    • Handle: RePEc:bhw:wpaper:01-2024
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    References listed on IDEAS

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    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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