On the Social Cost of Orbital Debris

Orbital debris represents a global environmental externality comparable to terrestrial ones and imposes a social cost on humanity. This paper quantifies the Social Cost of Orbital Debris (SCOD) using projections from an Integrated Assessment Model (IAM) linking economic activity with the space environment. The model generates optimal trajectories for orbital debris emissions and consumption for estimating the SCOD. Our findings indicate that the SCOD is about $84,200 per piece of debris larger than 1 cm in 2023, based on a 1.5% social discount rate and a relative risk aversion parameter of 1.5. Collision avoidance technologies significantly reduce the SCOD. JEL Classification: D62; E21; E22; Q53; Q58.