Report
Economic impact assessment of the EU’s ‘U-Space’ drone regulation
As part of the debate on the planned EU drone regulation ‘U-Space’, we have quantified the economic costs and calculated the costs of a more cost-effective alternative.
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Background
With ‘U-Space’, the EU is planning a regulatory framework for drone traffic. The impact assessment produced by the Civil Aviation Authority described the economic effects only in qualitative terms – there was no robust quantification of the costs and their impact on innovation potential.
Our Approach
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1
A qualitative and quantitative analysis of the direct and indirect costs of the proposed regulation.
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2
Quantification of software, infrastructure and support costs, as well as the market response on the demand side.
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3
Comparison with an alternative regulatory framework that excludes drones weighing less than 900 g.
Result
The analysis estimates the net costs of the planned U-Space regulation at around 7.6 to 8.7 billion euros. An alternative that excludes drones weighing less than 900 g reduces the costs by about a third (around €4.8 to €6.0 billion) whilst preserving the potential for innovation – a concrete lever for a more proportionate approach.