A world dynamics simulation model including solar power satellites (SP
S) is proposed for the purpose of analyzing the effect of SPS on the E
arth's environment. The model consists of the Earth section which is b
ased on Forrester's WORLD-2 model, and the SPS section which is based
on energy cost analysis referring to the chemical and traffic industri
es on Earth. Both sections of the model are connected through the ener
gy investment in SPS from the Earth and the energy return from SPS to
the Earth. The simulation results indicate that a relatively small amo
unt of energy investment in SPS would be effective in improving the Ea
rth's environment in the future.