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Optimal Active Debris Removal Policy in the Long-run

Author

Listed:
  • Aneli Bongers

    (Department of Economics, University of Malaga)

  • Jose L. Torres

    (Department of Economics, University of Malaga)

Abstract

This paper evaluates optimal active debris removal (ADR) policies for managing space pollution caused by orbital debris. ADR refers to ex post mitigation efforts that involve removing debris from orbit. We extend the DISE-2024 model, an integrated assessment model (IAM) of the global economy and space environment, by incorporating ex-post abatement cost functions for different types of orbital debris. The model determines optimal abatement expenditures and the optimal proportion of debris (derelict satellites, rocket bodies, and fragments) to be removed in order to maximize social welfare. Our findings indicate that the optimal removal rate for small debris fragments is higher than for larger objects such as derelict satellites and rocket bodies. The cost of implementing ADR policies increases over time as space activity expands. Importantly, optimal ADR policies help prevent unlimited accumulation of orbital debris, avoiding the risk of a Kessler syndrome.

Suggested Citation

  • Aneli Bongers & Jose L. Torres, 2025. "Optimal Active Debris Removal Policy in the Long-run," Space Economics Working Papers 07-2025, Institute for Space Economics, revised Jul 2025.
    • Handle: RePEc:bhw:wpaper:07-2025
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    File URL: https://spaceeconomics.org/wp-content/uploads/2025/07/SEWP-07-2025.pdf
    File Function: First version, 2025
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    More about this item

    Keywords

    Outer space; Orbital debris; Satellites; Abatement cost; Optimal policy; ADR policies;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • 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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