Economist Lynne Kiesling explores decentralized coordination and libertarianism in power markets, discusses projects involving thermostat automation and water heater chip engineering, delves into technological determinism's impact on power markets' evolution, navigates optimism and challenges in the energy sector, and explores historical development and regulation of the electric utility industry.
The debate around centralized planning in a complex system like the electrical grid revolves around whether it can lead to innovation or create hurdles. Centralized planning, if not flexible, may foreclose opportunities for organic growth and innovation due to overly rigid structures restricting adaptability.
Commodity Nature of Electricity
The concept of electricity as a commodity is challenged, highlighting the value of differentiated services rather than just current flow. Discussions touch on how technological subsidies distort outcomes in markets like wind power, causing disruption in the power sector.
Polycentric Governance and Common Pool Resources
The need for polycentric governance models in managing shared resources like the electricity grid is emphasized. Such models ensure decentralized decision-making across various levels to navigate complexities and promote adaptability.
Trade-offs in Public vs. Private Grid Management
Examining the trade-offs between public and private grid management reveals the rigidity of planning-oriented public systems and the potential for technological sclerosis. The conversation delves into the benefits of low barriers to entry for fostering innovation.
The Cycle of Order and Chaos in Institutions
Exploring the cyclical nature of institutions involving the turnover between order and chaos highlights the inevitable decay and renewal in systems. The Taoist perspective on the transient balance before the cycle begins anew is considered.
Epistemology and Innovation in Market Dynamics
The significance of the epistemology embedded in price systems for knowledge generation, innovation, and consumer captivation is underscored. The low barriers to entry in a market setting can drive creativity and lead to the flourishing of ideas and products.
We’re back! This time with Lynne Kiesling, Director of the Institute for Regulatory Law & Economics (IRLE) at Northwestern University.
Lynne is an Economist who has been working on power systems issues since the early 2000s, with a focus on power markets, transactive energy, and “quarantining the monopoly” as she says.
Lynne was a panelist at DERVOS, as paying subscribers know from our previously released episode. We felt her Hayekian perspective (distributed, emergent, local) rounded out those from Matt Huber (big, planned, federal) and Pier LaFarge (distributed, planned, local), and she graciously agreed to jump on the pod to dig in.
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