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Chris,

Why would I accept an energy unit or land unit issued in Japan? Or why would them accept those issued by me?

The fungibility of these things is something hard for me to cope with. If there's no physical way of linking our energy networks I can't figure how would this work. With a global fungible standard energy vector (such as methanol) this can be done, but if the energy unit is issued on the electric grid this is not simple.

luis_de_sousa@mastodon.social

by Luis de Sousa (luis[dot]de[dot]sousa[at]protonmail[dot]ch) on Wed Oct 7th, 2009 at 09:20:15 AM EST
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A Unit redeemable in Japanese land rental value is redeemable only in Japan, so its fungibility in Japan is pretty straightforward. Its fungibility elsewhere depends on how much that Japan produces that the relevant country imports, because they could pay for these imports with Japanese land-based currency.

An element of exchange control is built in to land-based currency, or maybe a better way of looking at it is that seigniorage (the benefit received by an issuer of currency) stays local. John Law proposed a land-backed currency 300 years ago, and most value in circulation is deficit-based (issued ex nihilo by a credit intermediary) but land-backed, through mortgages.

Electricity is regional/continental rather than global, but wherever Units redeemable in electricity are issued and accepted they would be priced against a constant energy Value Standard. eg 10 Kilo Watt Hours, or equivalent in BTUs

The point is that a currency Unit redeemable in electricity would not BE a Petro or Electro or Energy Dollar (unit of measure or value standard), but it should have a fixed price by reference to the Energy Standard. The redeemability of the Unit would require both acceptor and issuer to be a subscriber to the same Electricity Pool agreement and clearing /accounting system.

The obvious candidate for a global energy vector is gas (bio-methane in the long term), and any producer could issue Units redeemable in gas. The unit guarantees/secures price, and acts as a means of payment for supply actually received. But it does not guarantee supply.

Carbon energy Units would be priced against the Petro, and the price in Petros would depend upon the mode of fuel use, I guess. eg power generation, transport, or residential.

The way that profligate energy producers may reduce energy use is to ramp up carbon fuel prices to global
levels, and then to issue Units to the citizens. They could either continue their profligate ways, by redeeming Units against energy consumed, or exchange the Unit for something else of value to them.


"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Wed Oct 7th, 2009 at 06:22:26 PM EST
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