Resolving Conflicts Arising from the Privatization of Environmental Data (2001)

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RECONCILING THE VIEWS OF THE STAKEHOLDERS 82 In contrast to the U.S. approach government agencies in other countries exert copyright, database protections, and other forms of intellectual property in order to control access to data (see Chapter 2), thereby acting like monopoly suppliers and limiting the extent to which government-collected data can be used. These different approaches to data access are commonly a point of contention in international collaborations (e.g., Examples 5.1 and 5.5). Yet, such collaborations are essential for addressing global or regional environmental problems. Full and open access has been the norm in international collaborations for the following reasons: • It is necessary for establishing confidence in the data, both for current and future uses. • It is difficult to predict what information and in what amount will be needed to address the problem. • It facilitates the integration of global datasets, as well as the widespread application of knowledge gained about environmental processes in a particular region. • Creating multiple copies of data and metadata through open sharing increases their chance of long-term survival. Even if scientists and government agencies in wealthy countries can afford to buy data and the associated data rights from commercialized government agencies, it is unlikely that developing countries will be able to do so. If developing countries are excluded from long-term programs, it will not be possible to obtain the comprehensive coverage and range of expertise needed to address many global environmental problems. Conclusion. A data policy of full and open access that provides for unrestricted uses maximizes the benefits of international collaboration and the social benefits of the scientific endeavor. Privatizing Government Functions Determining which functions should be public and which ones should be private is the object of a long-standing debate. It is commonly 

RECONCILING THE VIEWS OF THE STAKEHOLDERS 83 in the public's interest7 to transfer government functions to the private sector, provided that competition leads to better products and services at lower prices, and public resources can be directed to other priorities.8 On the other hand, where the environment is concerned, privatization may have some pitfalls, including • a likelihood that the market structure will evolve toward a monopoly, which would increase the cost of data to all users and probably diminish responsiveness to user needs; • a commercial market may not exist and thus measurements important for some public uses (e.g., research, operations) may not be made at all (Example 5.4); and • a commercial market may lose viability and thus measurements may be discontinued, creating gaps in the long-term environmental record. Government attempts to stimulate commercial markets for Earth observation data in Europe have not been entirely successful. A European market study indicated that total revenues for commercial Earth observation data grew only 6 percent from 1994 to 1997.9 The same study indicated an apparent tendency toward industry concentration. In 1997, 13 companies captured 50 percent of the market, down from 16 companies in 1994. Little had changed by 1999,10 and a United Kingdom Parliament committee noted, “Despite more than a decade trying to stimulate commercial markets for Earth observation 7For purposes of this report, public-sector interests include scientific research on the environment, health and safety issues, and government operations. 8A general discussion of the economics of privatization can be found in J. Vickers and G.Yarrow, 1988, Privatization: An Economic Analysis, MIT Press, Cambridge, Massachusetts, 454 pp.; and D.M.Newbery, 2000, Privatization, Restructuring, and Regulation of Network Utilities, MIT Press, Cambridge, Massachusetts, 466 pp. 9ESYS Limited, 1997, European EO Industry and Market: 1998 Snapshot-Final Report, Prepared for the European Commission, Guildord, United Kingdom, 82 pp. 10 Presentation to a European Commission workshop, Has EO found its customers?, by S.Howes, ESYS Limited, on April 21–22, 1999. See <http://coconuds.nlr.nl/ workshop_4–99/ceo_workshop.htm..>