The economics of Earth observation data in the new space economy

Earth observation (EO) concerns the collection of data on the chemical, physical, and biological systems of our planet and represents a strategic sector of the space industry. This chapter provides a comprehensive reference for understanding the EO data economy along two dimensions. First, we investigate how the growing availability of satellite imagery and data, together with advances in information and communication technologies, can generate value in the economy through the creation of new services and applications in a wide range of fields. Second, we look at the commercial actors engaged in the creation of such services, by analyzing the EO downstream space application market. We analyze the two dimensions both theoretically, using formal economic modeling and empirically, by discussing empirical methods and results concerning the estimation of value and impact of EO data.