How do you price regulatory restrictions? The laws governing space are more lax than those governing how much chromium Tesla can dump into their waste water. By building in space, they get to completely sidestep any regulatory issues on Earth, like not being allowed to build what they want, wherever they want, how they want. It's annoying getting permits to do whatever on my house, but for businesses, it's a real problem.
The biggest regulation of building in space is... where do the debris go. You are tightly monitored for how much trash reenters into the atmosphere, so there is still SOME level of regulation.
There are safety regulations that require things roughly like, "to prevent harm to planes in the air and people on the ground, either control where your satellite re-enters so or make your satellite entirely out of components that are almost certain to burn up on re-entry".
As far as I can tell, there is no environmental regulation of how many kilograms of aluminum, silicon, etc. being added to the Earth's atmosphere when a Starlink burns up during re-entry.
