Funding of Capital Costs
Note that governments generally have not historically even tried to repay the capital costs of new launch systems from the launch costs. Several cases have been presented (space shuttle, ariane, etc.), documenting this. Russian space tourism does partially fund ISS development obligations, however.
It has been suggested that governments are not usually willing to pay the capital costs of a new replacement launch system. Any proposed new system must provide, or appear to provide, a way to reduce overall projected launch costs. This was the nominal impetus behind the Space Shuttle program.
Alternatively, according to a paper presented at the 55th International Astronautical Congress in Vancouver in October 2004, the space elevator can be considered a prestige megaproject and the current estimated cost of building it (US$6.2 billion) is rather favourable when compared to the costs of constructing bridges, pipelines, tunnels, tall towers, high speed rail links, maglevs and the like. It compares well to the costs of other aerospace systems as well as launch vehicles.
Read more about this topic: Space Elevator Economics
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