Earth Observation Data Sharing: Economic Issues Moving Forward on Data Policy and Cooperation in Earth Observations Bilateral U.S.-China CODATA Workshop National Academies of Science, Secure World Foundation August 25, 2014 Mariel Borowitz, PhD Sam Nunn School of International Affairs Georgia Institute of Technology
13
Embed
Earth Observation Data Sharing: Economic Issuessites.nationalacademies.org/cs/groups/pgasite/... · Earth Observation Data 1. EO Data has significant economic value – Weather, climate,
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Earth Observation Data Sharing: Economic Issues
Moving Forward on Data Policy and Cooperation in Earth Observations
Bilateral U.S.-China CODATA Workshop National Academies of Science, Secure World Foundation
August 25, 2014
Mariel Borowitz, PhD Sam Nunn School of International Affairs
Georgia Institute of Technology
Outline
• Economic Attributes of EO Data • Conflicting Economic Views of Data – Public Good vs. Commodity – Key Uncertainties – Stakeholder Concerns
• Examples from U.S., Europe, Japan – Economic Models: Landsat
• Key Uncertainties Revisited • Conclusions
8/25/14 Mariel Borowitz, Georgia Institute of Technology 2
Important Economic Attributes of Earth Observation Data
1. EO Data has significant economic value – Weather, climate, aviation, agriculture, mining, etc.
2. Non-rival in consumption – One person’s use of data does not diminish amount available for others
3. Excludability – Information often thought of as non-excludable – But satellite data can be kept secret, or put under copyright/ licensing
agreements 4. Increasing returns to use
– The more data is used, the greater the social returns – Kenneth Arrow, 1962, “Allocation of Resources for Invention”
5. Positive Externalities – Use of EO data provides benefits that extend beyond original user – Scientific understanding, value-added products
8/25/14 Mariel Borowitz, Georgia Institute of Technology 3
Economic Models: Landsat • Data originally freely available
– Technology for sharing data lacking – Established value of data
• Efforts to sell data, commercialize program – Higher costs led to fewer sales
• Anecdotes of U.S. agencies purchasing similar, less expensive satellite data from another nation
– Profit model led to even higher costs, fewer customers – conflicts with public benefit goals of government
• Commercialization deemed impossible at that time, tiered policy adapted
• Data made freely available online in 2008 – huge increases in downloads, use – Product: medium-resolution, science-focused system – Substitutes: similar data available free/inexpensive from other sources – Compliments: increase of computing power, etc.
8/25/14 Mariel Borowitz, Georgia Institute of Technology 8
Uncertainties Revisited: Is there a viable commercial market?
• Evidence suggests “no” in most cases – Dependent on specific product (resolution, etc.) – Particularly for low resolution data, data whose primary use
is science • Also depends on cost of supply – Could new low-cost start-ups change calculation?
• Importance of substitutes, complements – Data from non-satellite sources, satellite data from other
nations (decrease demand for commercial products) – Availability of computational capability, recognition of data
uses, GIS systems, growth of big data (may increase demand)
8/25/14 Mariel Borowitz, Georgia Institute of Technology 9
Uncertainties Revisited What is the elasticity of demand?
• Relatively elastic • Change in price leads to
large changes in demand – Even low price leads many
to forgo use of the data – particularly science users
– Trend seen in tiered policies as well (related, non-monetary barriers)
• Rapid adoption of freely available data (e.g. Landsat)
8/25/14 Mariel Borowitz, Georgia Institute of Technology 10
Uncertainties Revisited How can the benefits of EO data be quantified?
• Revenues are easy to
quantify (in dollars) – Often relatively low
• How to quantify other benefits (e.g. scientific understanding) – Value-added industry
seems to be much larger with free data
– Difficult to quantify science, societal benefits
8/25/14 Mariel Borowitz, Georgia Institute of Technology 11
Conclusions • In practice EO satellite data seems to function more like
a public good than a commodity – Increasing returns to use, positive externalities
• Social benefit maximized when data made available free (maximizing use)
• Data under-produced by industry – Commercial industry not viable in most cases – Ethical concerns play an intervening role (e.g. weather,
natural disasters) • Future role for industry? – Providing data not already produced by government – Producing data at a lower cost
• Innovative arrangements to allow free data sharing
8/25/14 Mariel Borowitz, Georgia Institute of Technology 12
Thank you Moving Forward on Data Policy and Cooperation in Earth Observations
Bilateral U.S.-China CODATA Workshop National Academies of Science, Secure World Foundation
August 25, 2014
Mariel Borowitz, PhD Sam Nunn School of International Affairs