Public Goods and Asteroid Defense

The Threat of Asteroids: Can We Protect Ourselves?

The Near Miss and Its Implications

• On September 29, 2004, the asteroid Tutatus narrowly missed Earth, highlighting the potential threat asteroids pose to humanity.

• Historical context: An asteroid is believed to have caused the extinction of dinosaurs, raising concerns about similar events potentially threatening human existence.

• The probability of dying from an asteroid strike is comparable to that of dying in an airplane crash, emphasizing the seriousness of this risk.

Understanding Asteroid Protection as a Public Good

• While the likelihood of a significant asteroid impact is low, its consequences could be catastrophic for all life on Earth.

• The concept of "invisible hand" in markets does not apply effectively to asteroid protection due to its unique characteristics.

Non-excludability and Free Riding

• Asteroid protection is classified as a non-excludable good; individuals who do not pay can still benefit from it if others fund it.

• This leads to a dilemma where many may choose not to contribute financially (free riding), assuming they will still receive protection if enough others pay for it.

Consequences of Free Riding

• If too many people opt out of paying for asteroid protection, there may be insufficient funding for effective defense measures against potential impacts.