Via The Knowledge Problem, an interesting speech given by Lynne Kiesling on the interplay of technological change and regulation, ranging from Schumpeterian disruptive innovation to the history of the electricity industry and its regulation to current smart grid issues.
Some of the themes discussed with be familiar to frequent readers here — innovation makes monopolies temporary, regulation that purports to “stand in for competition” cannot do so, and unless smart grid includes transactive technology and transactive market options, it’s not smart. The best way to deliver these potential benefits, and to avoid the distrust and Orwellian concerns attached to having such technology at the behest of government-granted monopolies and regulators is to open up retail electricity markets, reduce entry barriers, and enable innovators and entrepreneurs to transition electricity from a commodity product to a service that can be differentiated, bundled with other services, etc.
Enjoy!
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