Research on the Security Risk Governance Roadmap in Low-Altitude Economic Field Based on the Economic Externality Theory ^†

Abstract

In 2024, the low-altitude economy, as a representative of strategic emerging industries, was written into the government work report for the first time, becoming an important engine for the development of new-quality productive forces. China’s low-altitude economic development market is huge, but opportunities and risks coexist. With the rapid development of the low-altitude economy, all kinds of safety risks contained within it have not received enough attention, and the relevant policies and regulations of safety risk management need to be improved. Therefore, the concept of the low-altitude economy is defined and considers that the low-altitude economy belongs to the “economic field”. Secondly, the types of low-altitude economic security risks are summarized based on the theory of economic externalities, which shows that the management of low-altitude economic security risk of the national team is important and necessary. Thirdly, we comprehensively summarize the policies, laws, and regulations of a low-altitude economy and give a description of low-altitude economic security risk management. Finally, the practical path of low-altitude economic security risk management is given as establishing top-level design, establishing and perfecting regulations and standards, collaborative governance of multiple subjects, and strengthening safety knowledge.

1. Introduction

In December 2023, the central economic work conference clearly put forward that “to scientific and technological innovation leads the modern industry system construction” and recommended focusing on economic construction and high-quality development along with scientific and technological innovation to promote industrial innovation, especially with disruptive technology and cutting-edge technology, to create new industries, new models, and new kinetic energy, to develop new quality productivity, and to promote the intelligent industry, greening, and integration. The meeting proposed to “build a number of strategic emerging industries such as biological manufacturing, commercial aerospace and low-altitude economy”. The 2024 government work report proposed to “vigorously promote the construction of a modernized industrial system and accelerate the development of new quality productive forces”. The low-level economy was written into the government work report for the first time. As a representative of new quality productivity, the low-altitude economy is taking off and developing into a new growth engine, attracting much attention.

China’s low-altitude economic market is huge. Thanks to the deepening of the new scientific and technological revolution and industrial transformation, as well as the advantages of processing and manufacturing technology and their comprehensive integration, China’s low-altitude economy is ushering in a period of development opportunities. According to the “Research Report on China’s Low Altitude Economic Development (2024)” released by the CCID Research Institute of the Ministry of Industry and Information Technology, the scale of China’s low-altitude economy will reach CNY 505.95 billion in 2023, with a growth rate of 33.8%. Optimistic estimates are that the low-altitude economic scale is expected to exceed CNY 1 trillion by 2026. As of February 2024, there were more than 57,000 enterprises in China’s low-altitude economy, and the number of enterprises established in the past 10 years accounted for nearly 80% of them [1]. At present, 29 provinces in China have issued a series of industrial development policies and plans around the low-altitude economy, involving low-altitude aircraft manufacturing, low-altitude intelligent transportation, open-space integrated operation, low-altitude logistics, low-altitude tourism, etc. [2]. In addition, supporting policies related to the development of the low-altitude economy have been also successively introduced, involving supporting the landing of innovative subjects of the low-altitude economy, the construction of public service platforms, supporting related industries, and accelerating the introduction of professional talents.

2. Development of Research Questions

2.1. With the Rapid Development of the Low-Altitude Economy, the Security Risk of Low-The Altitude Economy Cannot Be Ignored

The development of the low-altitude economy is a complex giant project that requires the coordination of airspace planning, infrastructure construction, safety laws and regulations, technology research and development, commercial application, supervision, and governance. Although the government pays close attention to the low-altitude economy, it is not difficult to find the current security risks in the airspace, network, environment, privacy, and consumer market, and there is still room for improvement in the security governance system, mechanism, and laws and regulations of the low-altitude economy. In the face of the hot trend of a low-altitude economy, it is necessary to carry out deep combing and theoretical analysis of the emerging new problems, study the root causes of the problems and the development law, and discuss how to guarantee high-quality development of the low-altitude economy with Chinese characteristics.

2.2. It Is Uncommon to Study the Management of Low-Altitude Economic Security Risk from the Perspective of Economic Externality Theory

The low-altitude economy still belongs to the field of “economy” and should follow the operation rules of a market economy. At present, in the face of a large number of security risks that may be brought by low-altitude economic development, we can respond from the theoretical perspective of economic externalities in order to realize theoretical interpretation and guide practice and better prevent and defuse the security risks of a low-altitude economy. Focusing on the development of the low-altitude economy, disruptive technologies and cutting-edge technologies are the core, and legal guarantee is the key. The establishment and improvement of a sound security risk governance system is not only the objective requirement for the development of a low-altitude economy but is also the concrete manifestation of moderate state intervention in the economy and is a powerful means to overcome market failure and government failure. This paper is based on the need for low economic high-quality development to guarantee the premise by clarifying the concept of low economic relation from the perspective of the economic externality theory by combining low economic security risk types and obtaining the necessity of low economic security risk management of the government by comparing the low economic security risk management practices of United States, Britain, the EU, and other countries to our low economic security risk management. We put forward feasibility suggestions and provide references for the relevant policies and regulations.

3. Methodology

The research methodologies employed in this paper are primarily the literature research method, case analysis method, and theoretical research method, among others.

3.1. Literature Research Method

By consulting and meticulously combing through domestic and international literature, this study examines the conceptual definition of the low-altitude economy, the theory of economic externalities, and domestic and international policies and regulations. It synthesizes relevant theories and viewpoints on low-altitude economic security risk management. By analyzing the literature on low-altitude economic safety management, this study provides a reference framework for the subsequent analysis presented in this paper.

3.2. Case Analysis Method

Taking the safety regulation and management of domestic drones as a case study, this paper delves into policies, governance, and safety education to gain a profound understanding of the current risks in the economy and the distinct roles that the government, market entities, industry organizations, and the social public should play, helping targeted solution countermeasures.

3.3. Theoretical Research Method

Building upon the literature review, this study organizes and summarizes the theory of economic externalities, integrating it with the low-altitude economy. It proposes types of low-altitude economic security risks and governance ideas. On this foundation, the paper presents a feasible path and framework for the governance of low-altitude economic security risks.

4. Results and Analysis

4.1. Concept Definition of Low-Altitude Economy

The term “low-altitude economy” is rarely found globally. In English literature databases, the keyword “low-altitude economy” typically refers to the economic domain of garden tree cultivation in low-lying areas [3], which is entirely distinct from the concept of “low-altitude economy” in China. Through literature review, according to Qin, the concept of “low economy” was first introduced based on the general aviation concept, as reported in Anyang Daily on April 17, 2010 [4]. This concept emerged domestically and internationally as low airspace management reforms were initiated to foster the development of general aviation. In February 2021, the Outline of National Comprehensive Three-dimensional Transportation Network Planning mentioned “developing transportation platform economy, hub economy, channel economy, and low-altitude economy”, marking the first inclusion of “low-altitude economy” in national planning. Since then, “low-altitude economy” as an economic term has frequently entered public discourse.

Currently, there is no consensus on the definition of low-altitude economy, primarily due to the lack of a unified understanding of “low-altitude” itself. “Low altitude” generally indicates the airspace that does not affect transport air routes. The United States designates anything below 3000 m as low altitude, a standard shared by many countries [5]. Research in China tends to consider low altitude as below 1000 m, extendable to the airspace below 3000 m under special circumstances. In 2016, the General Office of the State Council issued the Guiding Opinions on Promoting the Development of the General Aviation Industry, expanding the scope of low-altitude airspace management reform with “opening” and “efficiency” as the breakthrough points, increasing the vertical range of low-altitude airspace from 1000 m to less than 3000 m. Since the Industrial Revolution in 1840, achievements in the industrialization process have tended toward saturation, and “low airspace” has shown significant development value in urban governance, agriculture, forestry, plant protection, low-altitude transportation, emergency rescue, cultural tourism, and other fields, gradually entering the vision of a new path for sustainable development. The development of “low-altitude airspace” is promoting economic development from “planar” to “three-dimensional” and becoming a strategic emerging resource. From the perspective of strategic emerging industries and future new economic growth points, the low-altitude economy is a typical representative of new productive forces and an important engine of new productive forces in China. Regarding the current discussion on the concept of “low-altitude economy”, two keywords are “low-altitude field” and “low-altitude flying activity”. From an economic standpoint, some scholars argue that the low-altitude economy is a “comprehensive economic form”. For instance, Fan Hengshan proposed that the low-altitude economy is a comprehensive economic form driven by the activities of manned and unmanned aircraft and the integrated development of related fields [6]; Xiang Jinwu, an academician of the Chinese Academy of Engineering, believes that the low-altitude economy is based on the airspace below 3000 m, encompassing air commuting, logistics, tourism, and other fields, which is a comprehensive economic form [7]. According to the “2024 China Low Altitude Economic Report” by Foresight Industry Research Institute, the low-altitude economy is based on low-altitude airspace, under the low-altitude flying activities of civil manned aircraft and unmanned aircraft, a comprehensive economic form that drives the integrated development of aircraft research and development, production, sales, infrastructure construction and operation, flight support, and derivative comprehensive services related to low-altitude flight activities [8]. The “2024 White Paper on Shanghai Low-altitude Economic Development” defines the “low-altitude economy” as the traction of various low-altitude flying activities of various manned and unmanned aircraft, a comprehensive economic form that radiatively drives the integrated development of related fields. Additionally, some scholars point out that the low-altitude economy belongs to the “economic field”. For example, Qin Rui believes that the low-altitude economy is an “economic field” parallel to the marine economy, forest economy, and space economy. The key resource is low-altitude airspace, and the output and value form are low-altitude flight activities and their value bearing [4]. This paper posits that according to the definition of “genus + specific difference”, the low-altitude economy should belong to the “economic field” of politics, society, and other fields related to human production and exchange. The low-altitude economy refers to the new energy aviation power technology, unmanned aviation technology, and the integration and innovation development of a new generation of information technology, with low-altitude airspace as the main activity field of low-altitude aircraft manufacturing, low flying activities, and related services such as comprehensive economic activities, aimed at better meeting the growing material and cultural needs of strategic emerging industries.

4.2. Theoretical Basis: The Theory of Economic Externalities

Security risks have a profound impact on society and the economy and may even be related to the future of humanity, necessitating state regulation. This requires the government to promote institutional innovation and formulate correct theoretical guidance rules. In recent years, focusing on the issue of low-altitude economic development, the legal community has begun to pay attention to various problems associated with low-altitude economic development. However, research on low-altitude economic security risk management from the perspective of economic externality theory is still lacking. Therefore, it is essential to systematically explore and study from this new perspective, adhere to systematic thinking, and ensure the high-quality development of the low-altitude economy on the premise of safety.

Economic externality refers to the non-market influence of the market activities of market entities on others and society. Randall defines externality as an inefficiency phenomenon produced when certain benefits or costs of an action are not within the consideration of the decision maker, that is, certain benefits are given or certain costs are imposed on those who do not participate in this decision [9]. A mathematical formula is used to express that the independent variable of the welfare function of a market subject contains the behavior of other market subjects, and the subject does not provide remuneration or claim compensation:

$${\mathit{F}}_{\mathit{j}}={\mathit{F}}_{\mathit{j}}\left({\mathit{X}}_{1\mathit{j}},{\mathit{X}}_{2\mathit{j}},\hspace{1em}\hspace{1em}\dots \dots ,{\mathit{X}}_{\mathit{n}\mathit{j}},{\mathit{X}}_{\mathit{m}\mathit{k}}\right) \mathit{j}\ne \mathit{k}$$

(1)

Here, j and k refer to different market entities, $F_j$ represents the welfare function of j, and $X_i$(i = 1, 2, …, n, m) refers to economic activity. This function shows that there are externalities as long as the welfare of a market subject j is influenced by an economic activity $X_i$ under its own control, but also by an economic activity $X_m$ controlled by another person k [10]. Economic externalities are divided into positive economic externalities and negative economic externalities. Positive economic externality is that the subject’s behavior benefits others or society; negative externality is that the subject’s behavior hurts others or society, but without paying a price. As a common typical case of economic negative externalities, for example, an upstream paper mill directly discharges sewage into the river without treating sewage, resulting in the impact of residential water consumption in the middle and lower reaches, seriously affecting the health situation.

According to Pigou, the nature of externality is the inconsistency between marginal private cost and marginal social cost, as well as the inconsistency between marginal private benefit and marginal social benefit. When they conflict, it is impossible to maximize social benefits relying solely on the market mechanism, so the government controls positive economic externalities; since the marginal private benefit is less than the marginal social benefit, the output of individual decisions is lower than the socially optimal output, leading to insufficient resource allocation and subsidies. In the case of economic negative externality, since the personal cost is higher than the excessive allocation of resources, the subject is taxed. Externalities are internalized through taxes and subsidies. Coase believes that without transaction costs, the optimal allocation of resources can be achieved through the market mechanism, but if there are transaction costs, the market mechanism is no longer effective, and the application of the legal system is very important.

4.3. Domestic and Foreign Policies and Regulations

4.3.1. China’s Low-Altitude Economic Security Risk Management-Related Policies and Regulations

From the current study of the low-altitude economy, as the low-altitude airspace resources are further released, China has seen development in new navigation tracks such as drones, eVTOL, and UAM, especially in drone application technology, navigation and control technology, electric energy technology, and optical technology. Relying on the entire manufacturing industry chain advantage, a first-mover advantage has been formed. However, with the development of low-altitude economy policies and regulations being perfected, there is a need to comb and analyze the current low-altitude economy policy and regulation system to lay the foundation for targeted countermeasures and suggestions.

At present, the low-altitude economy in the world is in a period of rapid growth. More and more countries have begun to pay attention to the development of the low-altitude economy and have issued policies and regulations to regulate and promote its development. Since 2010, China has issued a series of policies and regulations to promote the development of the low-altitude economy.

In November 2010, the State Council and the Central Military Commission issued “Opinions on Deepening the Reform of China’s Low-Altitude Airspace Management” (hereinafter referred to as “Opinions”) to deepen the reform of low-altitude airspace management. This was a deployment to develop general aviation and promote China’s aviation industry, which is an inevitable requirement for economic and social development and is of great significance. It marked the prelude to China’s low-altitude economy. According to the Opinions, China’s low-altitude airspace is divided into three categories: “controlled airspace”, “surveillance airspace”, and “reporting airspace”, with differentiated management modes for each category. In 2021, the CPC Central Committee and the State Council issued the Outline of the National Comprehensive Three-dimensional Transportation Network Plan, which proposed to develop the transportation platform economy, hub economy, channel economy, and low-altitude economy. This was the first time the concept of the “low-altitude economy” was written into national planning. In December 2023, the Central Economic Conference listed the “low-altitude economy” as a strategic emerging industry. In January 2024, the State Council formulated the Interim Regulations on the Management of Unmanned Aircraft Flight, which officially came into effect, regulating unmanned aircraft and related activities from four aspects: civil unmanned aircraft and operator management, airspace and flight activity management, supervision and management, and emergency disposal, legal responsibility. This marks China’s UAV industry entering a new stage of standardized development under the “law”. Unmanned aircraft will be included in the entire chain of supervision, guiding and standardizing the healthy and orderly development of related industries and further maintaining China’s aviation safety. The authors have sorted out the policies, plans, meetings, regulations, standards, and norms related to the development of China’s low-altitude economy issued in recent years, as shown in

Table 1. Plans, policies, and conferences related to the development of China’s low-altitude economy.

Num	Time	Planning, Policy, and Meetings	Related Content	Release Authority
1	2010	“Opinions on Deepening the Reform of Low-altitude airspace Management in China“	Clarify the overall objectives, stage, steps, and main tasks for deepening the reform of low-altitude airspace management.	The State Council, the Military Commission of the Central Committee of the CPC
2	2016	“Guidelines on promoting the development of the general aviation industry”	Proposed to expand the opening of low-altitude airspace. We will achieve seamless connection between surveillance airspace and reporting airspace below 3000 meters high, simplify the flight approval (filing) procedures, clarify the time limit for approval, facilitate the fast mobile flight of general aircraft, and solve the problem of “natural difficulties”.	General Office of the State Council
3	2018	“Overall plan for the construction of the low-altitude flight service and support system”	The significance, overall thinking, layout and function positioning, capacity building, and operation management of the construction of a low-altitude flight service guarantee system should be clarified.	Civil Aviation Administration of China
4	2019	“Guidelines on Promoting the Development of Civil Driverless Aviation (draft)”	It is proposed to focus on the establishment and operation of low-altitude UAV public air routes.	Civil Aviation Administration of China
5	2021	“The Outline of the National Comprehensive Three-dimensional Transportation Network Planning”	Put forward the development of transportation platform economy, hub economy, channel economy, and low-altitude economy.	The Central Committee of the Communist Party of China, the State Council
6	2022	“The development plan of the 14th Five-Year Plan”	It proposed to explore the integrated development of general aviation with low-altitude tourism, emergency rescue, medical education and care, and police aviation and deepen the reform of low-altitude airspace management.	The State Council
7	2022	“The 14th Five-Year Plan for Civil Aviation Development”	Improve the service support capability of low-altitude flight; continuously promote the reform of low-altitude airspace management; support the construction of low-altitude economic agglomeration area focusing on the development of the whole UAV industry chain; and promote the formation of cooperation and co-governance situation in facility construction, low-altitude airspace reform, low-altitude economic development, safety supervision, and other aspects.	Civil Aviation Administration of China, National Development and Reform Commission, Ministry of Transport
8	2022	“The 14th Five-Year Plan for Tourism Development”	To promote independent innovation and high-end manufacturing of low-altitude tourism equipment; improve the development policies of low-altitude tourism; strengthen the development, application, and industrialization of tourism equipment such as low-altitude aircraft.	The State Council
9	2022	“The 14th Five-Year Plan for general Aviation Development”	Develop the new economy of the low-altitude economy driven by new intelligent unmanned aircraft, optimize the low-altitude clearance environment to ensure flight safety, promote the reform of low-altitude airspace management, accelerate the construction of low-altitude flight service support system, and improve the low-altitude communication and surveillance capability.	Civil Aviation Administration of China
10	2023	“The Central Economic Working Conference”	The low-altitude economy is included in strategic emerging industries.
11	2023	“The Basic Classification Method of National Airspace”	According to the aircraft flight rules and performance requirements, airspace environment, air traffic control service content, and other elements, the airspace is divided into 7 categories: A, B, C, D, E, G, and W, among which A, B, C, D, and E are controlled airspace and G and W are non-controlled airspace.	Civil Aviation Administration of China
12	2023	“The Outline for the Development of the Green Aviation Manufacturing Industry (2023–2035)”	Encourage the Pearl River Delta, Yangtze River Delta, Bohai Rim, Chengyu, and other advantageous low-altitude economic demonstration zones; build low-air intelligent networks; and initially form a safe, convenient, green, and economical urban air transportation system.	Ministry of Industry and Information Technology of the People’s Republic of China, Ministry of Science and Technology, the Ministry of Finance, Civil Aviation Administration of China
13	2024	“The Fourth meeting of the Financial and Economic Commission of the CPC Central Committee”	Encourage the development of new logistics models that combine with the platform economy, the low-altitude economy, and driverless flights.
14	2024	“Government Work Report 2024”	It proposes to actively develop new economic growth engines such as bio-manufacturing, commercial aerospace, and low-altitude economy.
15	I2024	“Implementation Plan for Innovative Application of General Aviation Equipment (2024-2030)”	It proposes to accelerate the iterative upgrading of general aviation technology and equipment, create a new model for the development of the general aviation industry with Chinese characteristics, and provide strong support for cultivating new growth poles of the low-altitude economy.	Ministry of Industry and Information Technology of the People’s Republic of China, Ministry of Science and Technology, the Ministry of Finance, Civil Aviation Administration of China

and

Table 2. Regulations and standards related to the development of China’s low-altitude economy.

Num	Date	Regulations, Standards, and Specifications	Related Content	Release Authority
1	2014	“Regulations on the Use of Low Altitude Airspace (Trial)” (Draft)	In order to further promote the reform of low-altitude airspace management in China, standardize the management of low-altitude airspace, improve the utilization rate of airspace resources, and ensure safe, smooth, and efficient low-altitude flight.	State Air Control Commission
2	2023	“Interim Regulations on the Flight Management of Unmanned Aircraft”	It marks that China’s UAV industry will enter a new stage of standardized development.	The State Council (administration regulation)
3	2023	“General requirements for logistics operation of unmanned aircraft systems- -Part 1: Island scenario”	Follow the operation scenario, based on the principle of operational risk clear use of unmanned aircraft engaged in logistics operators, operation procedures and manual, the use of unmanned aircraft systems, operating environment and landing sites, operation control, communication support, navigation, and radio requirements, from the perspective of operation and technical specification logistics unmanned aircraft system production and application, in order to better promote the development of the logistics unmanned aircraft industry.	Civil Aviation Administration of China (occupation standard)
4	2023	“Regulations on Airspace Management” (draft)	In order to expand the opening of low-altitude airspace, solve the key problems of “sky difficulties” in China’s general aviation and break through the bottleneck restricting the development of the general aviation industry.	State Air Control Commission
5	2024	“Operation Safety Management Rules of Civil Unmanned Aircraft”	To standardize the operation and safety management of civil unmanned aircraft.	Ministry of Transport (regulation)

.

4.3.2. Experience of Foreign Legal Regulation of Low-Altitude Economic Risks

United States. The United States fully leverages the roles of the market and government to encourage innovation and strict supervision. On one hand, due to the irreplaceable advantages of drones in agricultural plant protection, logistics, electricity, oil industry, military industry, etc., the US government has continuously introduced new drone technologies and products with numerous policies. On the other hand, facing the increase in risk points of the low-altitude economy, the Federal Aviation Administration (FAA) of the United States has introduced a series of risk supervision measures to ensure and regulate the safety and development of the low-altitude economy. For example, it continues to improve drone supervision rules, emphasizes the protection of citizens’ privacy rights during the use of drones, establishes a specialized drone air traffic management agency, and publishes the “Anti-UAV Technology Report” to specifically study the working principles, technical maturity, and opportunities, challenges, and policy issues of anti-UAV systems.

United Kingdom. The United Kingdom plays the role of the government in developing the low-altitude economy and encouraging innovative technologies and policies. The government strongly supports drone technology, focusing on its application in traditional advantageous fields, such as monitoring crop growth measurement, detecting the structural safety of buildings, and logistics distribution. At the same time, the government formulates policies to support low-altitude economy funds.

European Union. The EU’s greatest advantage is the establishment of a classified regulatory framework. Wang Xizhu [11] believes that the framework is highly inclusive, focusing on operational risks and measuring risks by referring to many operational risk influencing factors. It has formulated a classification framework of “open, specific, and certified”. The “open” category is based on the principle of free flight; the “specific” category does not have to meet airworthiness conditions but can be specially authorized after review; the “certified” category is the model of traditional aircraft, including pilot licenses and airworthiness certification.

Looking at the relevant policies and regulations of the low-altitude economy in the United States, the United Kingdom, and the European Union, the basic problem to be solved is also to address the risk problem brought about by negative economic externalities, handle the relationship between the market and the government, give full play to the role of the “invisible hand of the market” and the “visible hand of the state”, and promote the safe development of the low-altitude economy.

Give play to the decisive role of the market. The development of the low-altitude economy should be based on the socialist market economy system with Chinese characteristics, give play to the decisive role of the market mechanism in the low-altitude economy, and at the same time give play to the role of the government’s policy guidance and policy encouragement.

The “hand of the government” is innovative and effective. To promote institutional innovation, it is necessary to apply the theory of positive economic externalities and give strong support to the development of the low-altitude economy and technological innovation in policies and regulations so that market entities can benefit. For example, the UK has issued a policy to support the development of the low-altitude economy. Based on the theory of negative economic externalities, the government should take the initiative to study risks and formulate laws, regulations, and policies to prevent risks in a timely manner. For example, the United States issued the “Anti-UAV Technology Report” to study the potential security risks of drones.

4.4. The Expression Form of Negative Externality of Low-Altitude Economy in China

After comprehensively combing through the relevant research on the low-altitude economy and current policies and regulations, the authors found that the current security risks in low-altitude airspace, information network, environment, personal privacy, consumer market, and many other aspects that may arise in the development of the low-altitude economy urgently require various security supervision systems to be established and improved and the modern security governance system to be improved.

4.4.1. Airspace Security Risks

The first is the security risk of low-altitude flight, including flight failure, flight area conflict, attack, etc.; the second is the risk of using low-altitude airspace resources. After the gradual liberalization of low-altitude airspace control, a series of problems such as spectrum resource management difficulties, network resource configuration difficulties, and airspace resource supervision difficulties will cause safety hazards in the use of low-altitude airspace resources, leading to restrictions on the high-quality development of the low-altitude economy. Third, the low-altitude air traffic management system and low-altitude flight infrastructure network are not yet perfect, and the relevant software and hardware infrastructure construction and industrial policy implementation supervision mechanisms need to be improved. In fact, the state has many obligations in ensuring aviation safety, public safety, national security, etc., and needs to safeguard national interests and social public interests through various means and institutional arrangements. For example, in August 2024, a white plane landed on a road near the Jinshitan National Tourism Resort in Dalian. At the time of the incident, only one pilot and a 10-year-old underage pilot student were on board. The accident caused no casualties, but it caused public concern about the safety of low-altitude flights. With the rapid development of the low-altitude economy, the laws and regulations, safety measures, flight operation qualification identification, and supervision of industries related to the low-altitude economy have become more and more prominent.

4.4.2. Cybersecurity Risks

At present, China’s low-altitude economic digital infrastructure construction has initially built a framework including communication, navigation, and monitoring systems. Communication technologies such as 5G and satellite Internet provide efficient and reliable communication guarantees for low-altitude aircraft; satellite navigation systems provide accurate navigation services for low-altitude aircraft; radar, ADS-B, and other technologies realize real-time monitoring and tracking of low-altitude aircraft. For example, Shenzhen, Shanghai, and other places have taken the lead in carrying out low-altitude economic digitalization pilot projects and have improved the safety and efficiency of low-altitude flights by building a digital low-altitude operation management system. However, there is a lack of response measures for possible network technology failures. Digitalization is a double-edged sword. With high efficiency, there will be the possibility of security risks. Therefore, it is necessary to balance the two aspects of development and security and do a good job in top-level planning, system design, and legal supervision. For example, the data transmission and storage of drones may be at risk of hackers or data leakage. For example, hackers invade the control system of drones and even control the flight of drones, which are highly likely to pose a threat to public safety.

4.4.3. Privacy and Security Issues

There are large regulatory and institutional blind spots in privacy risk management. For example, private data such as the flight path of drones, customer information, and real-time images obtained by cameras and sensors are easy to be stolen by hackers. If a large amount of user data is leaked, it may be used for malicious purposes, such as commercial competition, extortion, etc. In the low-altitude economy, privacy and security risks are an important issue. There is a lot of room for expansion and improvement in the management system and policy system of privacy and security risks for drones and the low-altitude economy. The government and enterprises need to have clear technical standards, management specifications, and operational means to protect private data.

4.4.4. Environmental Security Risks

The laws, regulations, and regulatory systems for the governance of new environmental security risks such as airspace noise, electromagnetic pollution, air cargo leakage pollution, and crash site pollution that may be brought about by the development of the low-altitude economy are in urgent need of improvement. The development of the low-altitude economy will have a three-dimensional impact on the airspace environment and is more likely to bring hidden dangers to people’s health. There is a lot of room for the construction of governance measures and prevention mechanisms around these potential risks.

4.4.5. Consumer Security Risks

The low-altitude consumer market lacks reasonable regulations and effective supervision. For example, the high consumption and high risks of low-altitude tourism that have emerged have harmed the rights and interests of consumers and disrupted the fair competition environment in the market. It is urgent to improve quality and reduce prices.

4.5. Feasibility Suggestion of the Practice Path of Low-Altitude Economic Security Risk Management

Based on the above analysis, based on determining how to manage security risks and further promote the healthy and sustainable development of China’s low-altitude economy, the following conclusions and countermeasures are drawn (as shown in Figure 1).

4.5.1. Improve the Top-Level Design

From the perspective of both development and security, further prevent airspace security risks and promote the healthy development of the low-altitude economy. To further balance the relationship between the market and the government, the government should formulate relevant policies and systems; encourage and guide market entities to invest in research and development of low-altitude economy-related industries; provide special fund support and R&D investment incentives for relevant enterprises; respect the market; give full play to the decisive role of the market; attract more diverse subjects to invest in technology innovation and research and development; and give awards and subsidies to qualified low-altitude economic and industrial projects. With both vitality and fairness, the government scientifically plans the spatial layout to ensure that all market entities can have the opportunity for balanced development, to provide support for the construction of low-altitude economic professionals, and in particular, to strengthen the training of talents in low-altitude economic security risk management.

4.5.2. Establish and Improve Laws, Regulations, and Standards

According to the risk classification of the negative externalities of the low-altitude economy, laws, regulations, and safety standards for security risk management in the field of the low-altitude economy are formulated to ensure that there are laws to follow for the development of the low-altitude economy. In fact, many provinces and cities have begun to pay attention to risk management and introduced a series of regulations and measures. For example, a place has formulated a real-name registration and flight reporting system for drones, requiring all UAV users to register with their real names. After purchasing drones, individuals should register their personal information and UAV models on the management platform of relevant departments. At the same time, for drones flying in specific areas or in commercial areas, users must report the flight to the management department in advance and submit the flight plan, purpose, time, and other information. The management subject shall review the reported content to ensure that the low-altitude flying activities comply with safety regulations. Through the real-name registration and flight reporting system, the negative external impact will be eliminated, the market subjects will be actively guided to strengthen their sense of responsibility, and the management and traceability of UAV flight activities will also be facilitated. Once safety risk problems occur, the responsible person can be quickly found and taken. At the present stage, only the regulations at the national level were promulgated by the State Council in May 2023 and officially implemented in January 2024. The construction of the legal and regulatory system of risk management needs to be strengthened urgently. In addition, the Airspace Management Regulations of the People’s Republic of China are still in the stage of soliciting opinions. It is necessary to strengthen the formulation and revision of relevant laws and regulations; for example, low-altitude traffic management regulations need to be established and improved. In addition, the current low-level consumption market is also booming, and it is necessary to improve the relevant laws and regulations of the low-altitude consumption market. For example, a series of safety management measures have also been taken for emerging low-altitude tourism projects. For example, for a tourist area to carry out low-altitude tourism business, the use of helicopters, hot air balloons, and other aircraft should be strictly in accordance with the airworthiness standards for management. Regular comprehensive inspection and maintenance of the aircraft ensure that its mechanical performance and electrical system are in good condition. At the same time, professional maintenance personnel are equipped to carry out daily maintenance and troubleshooting of the aircraft, improve the safety and reliability of the aircraft, and provide a safe flight experience for tourists. In addition, accelerate the establishment of a standard system for low-altitude equipment development, manufacturing, testing, and operation, and promote the third-party testing and certification system. In view of noise pollution and surrounding electronic radiation pollution, strengthen the safety risk pre-research, formulate technical specifications, improve the relevant laws and regulations, and strengthen supervision to eliminate or reduce environmental pollution from multiple dimensions.

4.5.3. Collaborative Governance by Multiple Subjects

The multiple subjects here include the government, enterprises, industry organizations, and the public, which need to make concerted efforts to build a low-altitude economic security governance ecosystem. First, the government main body should play a leading role in the low-altitude economic collaborative governance system. According to the theory of economic externalities, the government guides the behavior of market entities by formulating and implementing policies and regulations to escort the healthy development of the low-altitude economy. Second, as the most important market subject of the low-altitude economy, enterprises should consciously assume their responsibilities and actively participate in coordinated governance. The enterprises shall research and develop low-altitude green, safe, and innovative technologies and products in accordance with the requirements of relevant laws, regulations, and standards and abide by the regulations on low-altitude airspace management, low-altitude economic and environmental protection, low-altitude consumption market access, and operation and other regulations. Third, the low-altitude economic industry organizations should give full play to the leading position and advantages of the intermediary industry, actively organize and strengthen exchanges within the industry, and study and prevent market risks. Finally, the public is an indispensable force for low-altitude economic collaborative governance. The public should give full play to their dominant position, express their opinions and suggestions by attending public hearings and symposiums, actively participate in the management of low-altitude economic security risks, and enhance the democracy of the governance (Figure 2).

4.5.4. Strengthen Safety Knowledge and Science Popularization

At present, the public does not have much knowledge of the low-altitude economy, especially regarding the security risks of the low-altitude economy, which may affect the safe, green, and high-quality development of the low-altitude economy. For this emerging economic form and new important engine of productivity development, there is an urgent need to increase low economic security risk prevention science propaganda, “put science popularization and scientific and technological innovation on an equal footing” [12], allow more public understanding and trust in the low economy, promote low economic security risk management mode innovation, and boost low economic development.

5. Discussion and Conclusions

Although this analysis has successfully identified a specific path framework for the governance of low-altitude economic security risks, it is important to admit that this paper focuses on the necessity and feasibility of national governance of low-altitude economic security risks. Limited attention from the perspective of economic externalities may ignore the importance of this theory for low-altitude economic security risk management. Future research should strive to provide more comprehensive descriptions from different perspectives to ensure the comprehensive prevention and governance of low-altitude economic security risks. Other conclusions of this article are as follows.

5.1. Summarize the Security Risk Types Based on the Theory of Economic Externalities

At present, in order to achieve the high-quality development of the low-altitude economy, it is necessary to base the low-altitude economy on the socialist market economy system with Chinese characteristics and give full play to the decisive role of the market in the low-altitude economy. However, as described in the theory of economic externalities above, the rapid development of the low-altitude economy may bring a series of risks; that is, the behavior of low-altitude economic subjects may negatively affect others or society, and these risk problems cannot be solved by the market mechanism, which is “market failure”.

5.2. “Market Failure” Requires Effective Governance by the “Hand of the State”

The third Plenary Session of the 20th CPC Central Committee pointed out that “scientific macro-control and effective government governance are the inherent requirements for giving full play to the advantages of the socialist market economic system”. The theory of economic negative externalities well explains that “market failure” must be addressed by the “hand of the state”; that is, the government should issue laws and regulations to strengthen macro-control and market regulation. In order to achieve the high-quality development of the low-altitude economy, the core is to properly handle the relationship between the government and the market and solve the “market failure”. At the same time, it is also necessary to solve the “government failure” problems such as the imperfect system, the uncoordinated mechanism, the resulting insufficient supply of public goods, and the lack of relevant legal regulations. For example, it is necessary to strengthen system optimization and mechanism coordination among departments such as civil aviation, public security, industry and information technology and market supervision and management to minimize government failure. In addition, due to the rapid development of emerging technologies, new problems of “market failure” in the low-altitude economy emerge endlessly, and government regulations often fail to follow up in time. In addition, the lack of government capacity is also an important reason. Although information technology has fully enabled macro-control and market regulation, it is undeniable that there will still be a large lag in governance. Therefore, the government should first respect the decisive role of the market. At the same time, due to the political attribute of the low-altitude economy, the government should adhere to the principle of prudent supervision and promote the high-quality development of the low-altitude economy under the track of the rule of law.