The Economic Value of Digital Earth

Abstract

Abstract In this chapter, we approach the economic value of Digital Earth with a broad definition of economic value, i.e., the measure of benefits from goods or services to an economic agent and the trade-offs the agent makes in view of scarce resources. The concept of Digital Earth has several components: data, models, technology and infrastructure. We focus on Earth Observation (EO) data because this component has been undergoing the most dramatic change since the beginning of this century. We review the available recent studies to assess the value of EO/geospatial/open data and related infrastructures and identify three main sets of approaches focusing on the value of information, the economic approach to the value of EO to the economy from both macro- and microeconomic perspectives, and a third set that aims to maximize value through infrastructure and policy. We conclude that the economic value of Digital Earth critically depends on the perspective: the value for whom, what purpose, and when. This multiplicity is not a bad thing: it acknowledges that Digital Earth is a global concept in which everyone can recognize their viewpoint and collaborate with others to increase the common good.