Page 41 - Issue 63

Vol.1 Issue 63 January 2024Vol.1 Issue 63, May 2024 ELITE

The renaissance of space economy

Menna Wael - Third Level - Economics - English

Though many find the concept of space address a wide range of economic and non-
appealing, not many realise how much of an economic challenges and is a significant enabler
actual influence it has on their lives and of growth in other sectors.
enterprises. On the other hand, a recent trend The majority of space investments, according to
suggests that almost every industry can benefit the Space Foundation, originate from private
from space exploration. Ninety nations are businesses; estimates place the total revenue
currently involved in space exploration, earned by space enterprises' goods and services
compared to the two superpowers that started it at around $224 billion. Meanwhile, the overall
all—the United States of America and the amount spent by governments worldwide on
former Soviet Union. Space economics is one of space programmes increased by 19% in the
the nearly infinite applications of economics previous year, with the US and China leading
that can be studied. According to Harvard the way. How may space be unable to offer
Business Review, "goods and services produced answers to the issues that governments face?
in space for use in space, such as mining the Why not, given that space has the capacity to
Moon or asteroids for materials" are included in offer answers to the issues countries face?
the definition of "space economy." It can be With an expanding worldwide population and

defined as any activity that includes "the its consequences for energy, climate change, and
exploration, research, understanding, food security, space technology has the
management and use of space," according to the potential to protect and enhance food supplies.
Organisation for Economic Cooperation and Additionally, by managing water and crops
Development. By 2035, the space industry is more precisely and allowing businesses to track
predicted to grow from $630 billion in 2023 to their environmental and social performance as
$1.8 trillion. well as governments to track carbon dioxide
The European Space Agency states that the emissions, the adoption of satellite technology
establishment of new space infrastructure can lessen the environmental impact of
benefits industries like meteorology, energy, agriculture. On the other hand, approximately
telecommunications, insurance, transport, 50% of people on the planet lack Internet
shipping, aviation, and urban development, all connectivity, which denies billions of people
of which have an influence on a nation's access to essential public services like healthcare
41 economic growth. Space has the potential to and education. It is projected that establishing

Internet access in rural regions of Asia, Latin