Economic theory applied to space debris scenarios

The stability of the space environment is a growing source of discussion among policy makers. This chapter first estimates the growth in the number of objects in low-earth orbit in the next decades under various mitigation scenarios, and then qualitatively assesses satellite operators' economic incentives to adopt mitigation measures. The chapter concludes with a discussion of whether effective solutions to space debris challenges can emerge from a free-market setting or if public institutions need to intervene.