Taxing congestion of the space commons

Béal, S., Deschamps, M. and Moulin, H. (2020) Taxing congestion of the space commons. Acta Astronautica, 177, pp. 313-319. (doi: 10.1016/j.actaastro.2020.07.036)

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Satellites launched by independent spacefaring agencies and firms create space congestion and collision risk. Taking as benchmark the cost of a marginal reduction of the congestion rate, we discuss tax mechanisms financing a debris removal effort. We compare the non-cooperative equilibrium traffic when there is a tax on each new launch to recover cleanup costs, with the welfare optimal traffic under a centralized tax. We find that under the latter it is twice as easy to recover cleanup costs and increase traffic than under the former. We also show that a linear tax is twice as effective as a quadratic one.

Item Type:Articles
Glasgow Author(s) Enlighten ID:Moulin, Professor Herve
Authors: Béal, S., Deschamps, M., and Moulin, H.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Acta Astronautica
ISSN (Online):1879-2030
Published Online:01 August 2020
Copyright Holders:Copyright © 2020 IAA
First Published:First published in Acta Astronautica 177: 313-319
Publisher Policy:Reproduced in accordance with the publisher copyright policy

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