Zero-Gravity Zoning, Airspace Arbitrage, and The 30 Trillion Dollar Market
Why Every Rooftop Can Be a Drone Superhighway
To see what’s in front of one’s nose needs a constant struggle - George Orwell
Developing Infrastructure
The skies are no longer the exclusive domain of traditional aviation. With the rise of drones and vertical takeoff and landing (VTOL) aircraft, new technologies and the promise of faster logistics are reshaping our cities and infrastructure. But to fully unlock the potential, we need to think about how we manage the airspace.
Air rights are tradable assets, just like spectrum rights were for telecommunications. Through a free-market approach, airspace rights can be efficiently allocated, managed, and leveraged, unlocking massive economic value while promoting competition and innovation.
Private-market solutions can manage low-altitude airspace and allow the future of drone transportation to flourish. Decentralization is key, providing both the flexibility and incentives necessary for competition to thrive in a rapidly evolving industry.
A New Global Asset Class
Drone technology is creating new growth opportunities and challenges in urban airspaces. Just as spectrum rights were auctioned off to drive mobile technology, the legal and permitted airspace needed for drones to operate in low-altitude airspace is a scarce resource.
Air rights auctioning and its derivatives are critical in unlocking this market. Ownership and the ability to buy an option, lease, or sell air rights are paramount. Property owners already control the airspace above their land up to 500 feet, but they are often unaware of the value that this airspace can generate in the context of drones and other ancillary services. By turning these air rights into a tradable commodity, we incentivize investment in the low-altitude economies’ infrastructure while promoting competition.
Just as mobile network providers have leased spectrum rights to run their networks and use the air rights parcels to erect cell towers for density, property owners can rent or sell the air rights above their properties, creating an efficient, decentralized system. This model empowers landowners to unlock new revenue streams and ensures that the low-altitude economy has the dedicated paths to operate safely and efficiently.
What’s New Under The Sun?
One of the most practical tools in urban planning is Transferable Development Rights (TDR), which allows landowners to sell, lease and transfer their rights in specific
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