Mar
20
Understanding the High Cost of Military Drone Use Using a Rebound Effect Model
The Economist Magazine's March 13th 2021 issue has a great story about drone use and drone expenditure.
The piece starts by talking about Tom Cruise in the movie "Top Gun" and says that manned airplanes are expensive. One justification for substituting such flights and instead using drones is to save costs.
Per hour of flying drones are cheaper than manned aircrafts (even if Tom Cruise isn't the pilot!), But, the Rebound Effect lurks
Since Drones are cheaper per hour of flying, the Military chooses to fly more hours. The military's Demand curve slopes down and apparently is price sensitive. So, the total expenditure on flights has increased as drones have replaced Tom Cruise!
This is the Rebound Effect in action.
The piece starts by talking about Tom Cruise in the movie "Top Gun" and says that manned airplanes are expensive. One justification for substituting such flights and instead using drones is to save costs.
Per hour of flying drones are cheaper than manned aircrafts (even if Tom Cruise isn't the pilot!), But, the Rebound Effect lurks
Since Drones are cheaper per hour of flying, the Military chooses to fly more hours. The military's Demand curve slopes down and apparently is price sensitive. So, the total expenditure on flights has increased as drones have replaced Tom Cruise!
This is the Rebound Effect in action.
