Economics and Management of a Terraforming Project

Paper number

IAC-05-E3.3.09

Author

Mr. Julio Aprea Perez, International Space University (ISU), The Netherlands

Coauthor

Mr. Tobias Bittner, International Space University (ISU), Germany

Coauthor

Mr. Erik Clacey, Swedish Space Corporation, Sweden

Coauthor

Mr. Aaron Gronstal, International Space University (ISU), United States

Coauthor

Mr. Angelo Grubisic, University of Southampton, United Kingdom

Coauthor

Mr. Damian Rogers, Ryerson University, Canada

Year

2005

Abstract

This work is a chapter of a report about the subject of Terraforming, which is being written by the 2005 students of the International Space University.

Terraforming is classified as a megaproject. This chapter analyses the differences between a normal project and a megaproject, what considerations should be taken into account, and compares the terraforming effort to other humankind efforts trough history.

Terraforming will need a significant resource investment. In order to obtain the necessary resources from founders, we first need to understand how a project appeals to different sources of capital. Two types of sources are private investments and public investments. Private investors are attracted to finance projects that will give an economical return on the capital invested, whereas public investments are attracted to projects that are perceived as good for society as a whole and provide a social return. An overview of decision making tools on financing sources is also given in the chapter.

A project like terraforming is several generations from now to be feasible. Until other comparable space endeavors are accomplished (a Moon base, a manned mission to Mars), a reasonable and solid way of financing terraforming cannot be determined. There are many proposals on innovative ways of financing terraforming and these are covered in the chapter. 

If a project like terraforming is ever to be taken, then three objectives will have to be accomplished first:

1. Persuade a sponsoring space-faring power or powers with economic resources (US, EU, China) to absorb as much of the initial costs of the project (exploration, technology development, planning and infrastructure) as politically possible.

2. Create a “Development Authority”, a semi-sovereign governmental entity or a sovereign nation-state with the legal ownership over the territory to be developed.

3. Maximize cash flows to pay the borrowing of money needed to start construction. If the cash flows are high enough, the project can be self sustainable during its lifetime. But for that, several commercial opportunities should be identified

These three objectives are also developed in this chapter of the report.

Abstract document

IAC-05-E3.3.09.pdf

Manuscript document

IAC-05-E3.3.09.pdf (🔒 authorized access only).

To get the manuscript, please contact IAF Secretariat.