[p2p-research] All Work is Created Equal

[marc fawzi]

Hi Stan,

Thank you for asking these questions.

<<

> What regulatory mechanism ensures that the generation of electricity
> is "sustainable," or doesn't pollute the environment, or doesn't
> create some other sort of negative externality?
>
>>

Re: "polluting"

>From "Model's Context" section

"It's expected that the community mandates certain criteria, e.g. solar,
wind, renewable sources, with local storage, and a scalable decentralized
electric grid."

Re: sustainability

>From "P2P Energy Management"

"Sustainable abundance in energy can only come from having many equally
empowered peers producing electricity not from one or few major suppliers.

Sustainable abundance in energy also requires close matching of demand and
supply at the work value of energy (not at the so-called "equilibrium
price," which artificially limits demand to meet circumstantially limited
supply, and not at a price above this so-called equilibrium price, where
supply is artificially limited, but at the actual work value of energy in
joules which are exchangeable at 1:1 ratio with the "joule token" currency
used here.) This implies that anyone who wishes to get any amount of energy
can do so at the actual work value of that energy in joule tokens.

Below is a simple predictive algorithm for matching demand and supply:
1. P2P Bank takes historical inventory utilization data (during the start-up
period) and calculate a Gaussian distribution with a Mean and Covariance and
provide an inventory level prediction at a set time in the future. 2. P2P
Bank compares the inventory level prediction to a first P2P Bank-set low
inventory threshold. 3. P2P Bank compares the inventory level prediction to
a second P2P Bank-set high inventory threshold. 4. P2P Bank requests energy
replenishment from peers if the predicted level is below the low inventory
threshold, or cancel existing requests if the predicted level is above the
high inventory threshold. P2P Bank manages the response to its replenishment
request by accepting a given quantity of energy from each peer, on first
come first taken basis, based on a supplier scheduling algorithm that takes
into account multiple factors such as: peer reliability (historical ability
to fulfill replenishment request) and other factors (TBD) in diversity
maximizing way to avoid creating unsustainable dependence on certain peers
or certain categories of peers. Note that, as a result of this many-to-many
mapping process, the producers and consumers are never known to each other,
which adds to the security of the system without sacrificing transparency
since all the demand/supply data related to energy is available to all. 5.
P2P Bank records time dependent data related to inventory consumption and
replenishment. 6. P2P Bank calculates time dependent cumulative-forecast
consumption, cumulative-forecast replenishment, cumulative actual
consumption, and cumulative actual replenishment. 7. P2P Bank uses the new
data to update the Gaussian distribution, Mean and Covariance, and calculate
a new predicted inventory level for the next time period.

It's important to note that the P2P Bank inventory is virtually centralized
(as an algorithm) and physically decentralized."

<<

>
> In other words, how does the system deal with intentional or
> unintentional cheating?
>
>>

>From "P2P Energy Management" section:

"4. P2P Bank requests energy replenishment from peers if the predicted level
is below the low inventory threshold, or cancel existing requests if the
predicted level is above the high inventory threshold. P2P Bank manages the
response to its replenishment request by accepting a given quantity of
energy from each peer, on first come first taken basis, based on a supplier
scheduling algorithm that takes into account multiple factors such as: peer
reliability (historical ability to fulfill replenishment request) and other
factors (TBD) in diversity maximizing way to avoid creating unsustainable
dependence on certain peers or certain categories of peers. *Note that, as a
result of this many-to-many mapping process, the producers and consumers are
never known to each other, which adds to the security of the system without
sacrificing transparency since all the demand/supply data related to energy
is available to all. "*


<<

> You say below that I can find producers that share my values.  How do
> I know that producers who _tell_ the system they have particular
> values and practices _actually do_ have those values and practices?
>
> >>

>From "Affinity Matrix for P2P Trading" section

"The Affinity Matrix requires that existence of standards for transparency
(on the part of producers) that are followed by all producers. For example,
all packaged foods sold in the US must carry a label indicating all
ingredients. Organic producers have a certifying organization that certifies
their farming processes, and so on. The more such standards exist and the
more they're followed (e.g. by law) then more realistic this idea becomes. "


~~


One thing I know I missed is the part where you say "create a negative
externality" .. unless you mean "depends on negative externality"  in which
case the answer would be that the community must dictate the criteria for
energy production in its set of rules and that's an administrative issue
related to implementation.

Marc



>
>
> On Sat, Jan 31, 2009 at 3:48 PM, marc fawzi <marc.fawzi at gmail.com> wrote:
> >
> >
> > Good Things Come to Those Who Care
> >
> > In today's economy socially, environmentally and ecologically conscious
> > producers of goods and services are beginning to see increased sales, but
> > only in very limited niches and local markets.
> >
> > In the P2P Energy Economy consumers identify, as part of each purchase of
> > goods or services, the required attributes (for the given good or
> service)
> > as well as their social, environmental and ecological values, which
> allows
> > them to find producers (of the given good or service) who support their
> > values. This means that money flows more in sync with society's values.
> >
>
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