Estimation of costs and benefits of debris mitigation

Abstract

Space debris is an ever escalating problem that is increasing the orbital scarcity and threatening its sustainability. In this document, we present a model for the market of satellite services where firms’ activity imposes an external cost on other firms due to the risk of collision and debris accumulation. We evaluate the equilibrium outcomes depending on the number of competitors, which affects the probability of collision. Extensions of the model include the consideration of different types of satellites in terms of weight and purpose. Our model suggests policy recommendations for the outer space debris and how a possible fiscal policy can promote debris mitigation in LEO (Low Earth Orbit).