Uncovering the Value in Earth Observations

Abstract:

Justification of large-scale public investments in projects such as the EU Copernicus flagship, is generally based on cost-benefit analyses which of necessity, take a top-down view, looking at the big picture. But Earth Observations can be used in so many ways that, under closer examination, this traditional approach breaks down and this has led us to take a bottom-up approach based on a value-chain analysis.

Whilst Earth Observation data can be used in many and varied ways, there is relatively little appreciation of the full value which is being generated. EARSC, under a commitment from ESA, has been working to uncover this value. A methodology has been developed and applied to 10 cases so far, all showcasing the operational use of Sentinel data. After initially focusing on the economic benefits, we have recognised 5 other dimensions in which value can be generated, namely environmental, societal, regulatory, innovation & business, and science & technology benefits.

The value-chain approach starts with a single product or service which is being used by a public or private organisation for their daily work. From this, a full value chain is constructed and analysed to quantify the impacts that the use of the data is having right down to the citizen in the street. This allows the analysts to “get under the skin” of a case and to understand how the different actors are benefiting. A series of indicators are established each of which helps to characterise the overall benefits and impacts coming from the use of the Sentinel data and to help comparability between different cases.

Two difficulties arise with this approach; to develop the counterfactual and the attribution of the total benefit to the satellite data. In most services, many different types of information are used and assumptions must be made for the contribution, or proportion of the benefit, which is arising from the use of the EO data.

Our key goal is to uncover the value in the use of EO data, but the use is so extensive that we can only scratch the surface given the multitude of possible cases. Hence, another of our goals is to develop our methodology in such a way that will enable other practitioners to be able to conduct case analyses themselves. The paper will explain the methodology giving examples from the cases which have been studied so far.