tag:theconversation.com,2011:/us/topics/peer-to-peer-economy-19055/articlesPeer-to-peer economy – The Conversation2023-02-14T01:13:05Ztag:theconversation.com,2011:article/1996652023-02-14T01:13:05Z2023-02-14T01:13:05ZCyclone Gabrielle: how microgrids could help keep the power on during extreme weather events<figure><img src="https://images.theconversation.com/files/509893/original/file-20230213-14-h5m07i.jpg?ixlib=rb-1.1.0&rect=15%2C93%2C5157%2C3165&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Fiona Goodall/Getty Images</span></span></figcaption></figure><p>Tens of thousands of homes and businesses are left without power as Cyclone Gabrielle batters New Zealand’s North Island, causing widespread damage to the power network.</p>
<p>The government has declared a <a href="https://www.stuff.co.nz/national/politics/300806430/cyclone-gabrielle-national-state-of-emergency-declared">national state of emergency</a> (for only the third time in New Zealand history) to coordinate efforts across the regions most affected. </p>
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<p>The grid operator Transpower has declared a <a href="https://www.transpower.co.nz/news/transpower-declares-grid-emergency">grid emergency</a> following the loss of power in some regions, advising people “should be prepared to be without power for days to weeks, rather than hours”. </p>
<p>This once again emphasises the vulnerability of centralised power systems to increasingly severe weather events. It is crucial for communities to adopt more resilient energy solutions that can withstand such challenges in the face of a changing climate.</p>
<p>The cyclone is the second significant weather event to hit Auckland and the upper North Island in just a few weeks, following record rainfall and flooding last month. </p>
<p>Our <a href="https://www.wellingtonuniventures.nz/portfolio/building-sustainable-energy-systems/">research</a> explores how <a href="https://www.microgridknowledge.com/about-microgrids/article/11429017/what-is-a-microgrid">renewables-based microgrids</a> and peer-to-peer (<a href="https://www.genesisenergy.co.nz/about/sustainability/climate-change-hub/yourself/peer-to-peer-power-the-future-of-sustainable-household-energy#">P2P</a>) energy trading can help mitigate these impacts and increase energy independence and security.</p>
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<a href="https://theconversation.com/microgrids-how-to-keep-the-power-on-when-disaster-hits-130534">Microgrids: how to keep the power on when disaster hits</a>
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<h2>Vulnerability of centralised power systems</h2>
<p><a href="https://www.epa.gov/energy/centralized-generation-electricity-and-its-impacts-environment#">Centralised power systems</a> rely on large power plants and transmission grids. They are susceptible to single points of failure, making them vulnerable to extreme weather events. </p>
<p>Cyclone Gabrielle and the recent flooding in Auckland, which both resulted in <a href="https://www.rnz.co.nz/news/national/483194/wild-weather-crashes-power-cuts-as-severe-thunderstorm-watch-issued-for-northern-nz">widespread power outages</a>, are prime examples of this. </p>
<p><a href="https://powernet.co.nz/future-energy/microgrids/">Microgrids</a> (small collections of power-generating assets, often run by communities) and P2P energy systems hold promise for sustainable and resilient energy. Microgrids are self-sufficient and can operate independently or in conjunction with the larger grid. They can run on different types of renewable energy sources, including solar, wind and hydro power. </p>
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<img alt="This illustration shows a typical grid-connected microgrid." src="https://images.theconversation.com/files/509313/original/file-20230209-14-6jwxa.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/509313/original/file-20230209-14-6jwxa.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=605&fit=crop&dpr=1 600w, https://images.theconversation.com/files/509313/original/file-20230209-14-6jwxa.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=605&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/509313/original/file-20230209-14-6jwxa.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=605&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/509313/original/file-20230209-14-6jwxa.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=760&fit=crop&dpr=1 754w, https://images.theconversation.com/files/509313/original/file-20230209-14-6jwxa.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=760&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/509313/original/file-20230209-14-6jwxa.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=760&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">This illustration shows a typical grid-connected microgrid.</span>
<span class="attribution"><span class="source">Author provided</span>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span>
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<p>Microgrids are ideal for <a href="https://www.microgridknowledge.com/google-news-feed/article/11427328/look-ma-no-grid-five-life-changing-microgrids-with-no-tie-to-a-central-grid">communities far from the main grid</a> or in areas <a href="https://www.microgridknowledge.com/sponsored/article/21529170/eaton-five-microgrid-design-considerations-for-operating-in-extreme-weather-conditions">prone to extreme weather</a>.</p>
<p>P2P energy systems allow individuals and communities to generate, share and trade energy among themselves. This creates a <a href="https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2020/Jul/IRENA_Peer-to-peer_electricity_trading_2020.pdf?">decentralised energy market</a> and allows for more efficient energy use and distribution.</p>
<h2>Case studies</h2>
<p>Many microgrid and P2P energy projects across the world show the potential of these solutions. In <a href="https://www.powerengineeringint.com/decentralized-energy/rural-india-receives-100-microgrids-in-ten-months/">rural India</a> and <a href="https://www.nrel.gov/usaid-partnership/microgrids-energy-africa.html">sub-Saharan Africa</a>, microgrids powered by solar energy provide electricity to remote communities not connected to the main power grid.</p>
<p>The <a href="https://www.brooklyn.energy/">Brooklyn Microgrid</a> in New York City is also a shining example of a successful project. It allows residents to generate energy, share it and trade it with others in their community. This creates a more efficient and sustainable energy market.</p>
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Read more:
<a href="https://theconversation.com/small-communities-could-be-buying-selling-and-saving-money-on-electric-power-right-now-heres-how-190740">Small communities could be buying, selling and saving money on electric power right now – here’s how</a>
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<p>Another successful microgrid and P2P energy project can be found in the town of <a href="https://www.nrel.gov/docs/fy21osti/75909.pdf">Rock Port, Missouri</a>. There, a community microgrid was established after a tornado destroyed the town’s electricity infrastructure. It is powered by wind and solar and provides stable and reliable energy for the community, even during times of extreme weather.</p>
<p>Hurricane Maria, which devastated Puerto Rico in 2017, serves as a stark reminder of the importance of energy independence and resilience. It caused widespread destruction to the island’s energy infrastructure and left residents without power for months. In the aftermath of the storm, many communities on the island have <a href="https://www.ornl.gov/news/researchers-bring-more-reliable-electricity-puerto-rican-microgrids">turned to microgrids</a> as a solution to their energy needs.</p>
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<figcaption><span class="caption">As part of its recovery following Hurricane Maria, the Puerto Rican town of Adjuntas is installing solar-based microgrids.</span></figcaption>
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<h2>Cost effectiveness and social acceptability</h2>
<p>Our <a href="https://www.wellingtonuniventures.nz/portfolio/building-sustainable-energy-systems/">research</a> shows that microgrids, both grid-connected and off-grid, can be cost effective when optimised. In Aotearoa New Zealand, they can be on par or even more cost effective than traditional power. </p>
<p>Our case studies from <a href="https://www.newsroom.co.nz/ideasroom/going-off-grid-with-micro-grids">Aotea Great Barrier Island</a>, <a href="https://www.stuff.co.nz/business/green-business/128618849/researcher-says-8m-may-get-stewart-island-off-diesel-energy">Rakiura Stewart Island</a> and the town of <a href="https://www.newsroom.co.nz/scaling-down-hydrogen-to-our-communities">Ohakune</a> demonstrate this. </p>
<p>The implementation of microgrids and P2P energy systems in these areas has the potential to improve energy resilience and save communities money in their electricity bills.</p>
<p>The social desirability and acceptability of these technologies are crucial factors and will determine their success and widespread adoption. Public perception can sometimes be a <a href="https://www.sciencedirect.com/science/article/pii/S1364032120301350">barrier to their implementation</a>. </p>
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Read more:
<a href="https://theconversation.com/long-power-outages-after-disasters-arent-inevitable-but-to-avoid-them-utilities-need-to-think-differently-167157">Long power outages after disasters aren't inevitable – but to avoid them, utilities need to think differently</a>
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<p>For example, microgrids often require significant amounts of land for the installation of renewable energy sources, such as solar panels or wind turbines. However, some communities may resist the development of these projects due to <a href="https://www.forbes.com/sites/davidcherney/2020/10/26/not-in-my-backyard-a-challenge-to-decarbonization-that-can-be-overcome/">concerns over land use</a>. </p>
<p>The <a href="https://www.jstor.org/stable/41303623">visual impact</a> on the surrounding area or the <a href="https://defenders.org/blog/2021/08/renewable-energy-and-wildlife-can-coexist-and-they-must">potential disruption to wildlife habitats</a> can also be reasons for resistance.</p>
<p>In these cases, it is important for project developers and local authorities to engage with communities. They need to address their concerns and promote a greater understanding of these technologies and their benefits to build support for these projects. </p>
<p>Demonstration projects can also showcase the capabilities and benefits of microgrids and P2P energy solutions. Involving the local community in the development and ownership can increase their social acceptability.</p><img src="https://counter.theconversation.com/content/199665/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Alan Brent is affiliated with Victoria University of Wellington, a chartered member of Engineering New Zealand and an executive committee member of The Sustainability Society. </span></em></p><p class="fine-print"><em><span>Soheil Mohseni does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>National electricity grids are vulnerable to extreme weather events and can leave entire regions without power. Microgrids can deliver better energy security in a warming world.Soheil Mohseni, Postdoctoral Research Fellow in Sustainable Energy Systems, Te Herenga Waka — Victoria University of WellingtonAlan Brent, Professor and Chair in Sustainable Energy Systems, Te Herenga Waka — Victoria University of WellingtonLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1467422020-10-22T12:24:03Z2020-10-22T12:24:03ZWhat the rise of digital handouts on Venmo and Cash App says about our fraying social safety net<figure><img src="https://images.theconversation.com/files/364597/original/file-20201020-17-1rxdn3g.jpg?ixlib=rb-1.1.0&rect=6%2C12%2C4061%2C2951&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Some people have taken to asking complete strangers on social media for money to cover small expenses.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/illustration/vector-illustration-of-hand-giving-money-to-royalty-free-illustration/465059316">helllbilly/iStock via Getty Images</a></span></figcaption></figure><p><a href="https://twitter.com/arikarb/status/1309564728793075713?s=20">A college student</a> pleading for grocery money. <a href="https://twitter.com/PettyEmpress/status/1300375174760538115?s=20">A driver</a> in need of an unexpected car repair. <a href="https://twitter.com/itsthesoftfish/status/1317641616039899136?s=20">A worker</a> out of a job because of the COVID-19 pandemic. <a href="https://twitter.com/jay_jon22/status/1318628317831041025?s=20">A single mom</a> who needs to pay the internet bill to support her kids’ distance learning. </p>
<p>In all of these cases, people turned to Twitter to ask for financial support during the pandemic. Not thousands of dollars. Just a few bucks. Whatever online followers could spare. </p>
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<p><a href="https://scholar.google.com/citations?hl=en&user=cYOUU4EAAAAJ&view_op=list_works&sortby=pubdate">As a consumer sociologist</a>, I study digital culture and social media. I’ve noticed an uptick in these requests on Twitter, TikTok and Instagram, which are made possible by the growing popularity of peer-to-peer payment platforms like PayPal, Venmo, Cash App and Zelle. </p>
<p>This diverges from traditional crowdfunding in which official online campaigns are set up for lofty fundraising goals. And it isn’t the same as asking a friend to cover the tab.</p>
<p>Digital handouts on social media that help people make everyday ends meet point to the power and generosity of online communities. At the same time, they represent yet another sign that there are deep holes in America’s social safety net.</p>
<h2>Brother, can you spare a dime … online?</h2>
<p>In America, asking strangers for money <a href="https://www.smithsonianmag.com/history/myth-professional-beggars-and-why-it-endured-centuries-180962726/">has long been stigmatized</a>.</p>
<p>In England, during the <a href="https://archive.org/details/ahistoryvagrant00turgoog/page/n5/mode/2up">16th and 17th centuries</a>, the begging poor were criminalized, with poverty portrayed as a moral failing caused by lack of industriousness. In reality, the ruling class wanted to control the labor market and discouraged government-funded welfare. These ideals of industriousness were shipped to the United States and repackaged as the “American dream,” <a href="https://global.oup.com/academic/product/the-american-dream-9780195173253?cc=us&lang=en&">the credo</a> that anyone with pluck can pull themselves up by their bootstraps. </p>
<p>The subtext? If you can’t, it’s your own fault. </p>
<p>For these reasons, the stitching together of a social safety net has been a fraught political enterprise, with starts, stops and backsliding through the decades. People in need are often forced to turn to churches, family and the generosity of strangers.</p>
<p>The internet, however, ushered in new ways of asking for money, particularly with <a href="https://theconversation.com/explainer-what-is-crowdfunding-9444">the rise of crowdfunding</a>, the practice of pooling donations from a large number of individuals. The first known online crowdfunding campaign <a href="https://www.fundable.com/crowdfunding101/history-of-crowdfunding#:%7E:text=The%20first%20recorded%20successful%20instance,dedicated%20crowdfunding%20platform%20in%202000.">launched in 1997</a>, and dedicated crowdfunding platforms cropped up online throughout the 2000s.</p>
<p><a href="https://doi.org/10.1177/1461444814558906">Through crowdfunding</a>, people who may not have had access to financial resources can raise money for <a href="https://theconversation.com/as-patients-turn-to-medical-crowdfunding-concerns-emerge-about-privacy-77776">health care treatments</a>, <a href="https://www.cnn.com/2017/02/20/world/iyw-adopt-together-adoption-crowdsourcing-charity/index.html">adoptions</a>, <a href="https://www.wnpr.org/post/college-tuition-skyrockets-students-turn-crowdfunding-help-defray-costs">college tuition</a>, <a href="https://theconversation.com/racial-justice-giving-is-booming-4-trends-145526">racial justice</a> and other causes.</p>
<h2>Sending cash with the click of a button</h2>
<p>Peer-to-peer payment platforms like PayPal, Venmo, Cash App and Zelle have made it even easier to ask for and receive cash assistance.</p>
<p>Over 60% of American millennials <a href="https://newsroom.bankofamerica.com/press-releases/consumer-banking/end-iou-p2p-payments-new-social-norm">report</a> using at least one of these payment platforms, and <a href="https://www.zellepay.com/press-releases/make-room-millennials-zelle-study-finds-generation-x-and-boomers-driving-broader">a new survey</a> from Zelle suggests Gen X and baby boomers are overcoming their skepticism of digital cash transfers. </p>
<p>When friends go out to dinner, they can simply split the dinner bill using the mobile apps. Roommates can use it to pay rent, and vendors can use it to directly charge customers.</p>
<p>But these apps have also given rise to a growing cultural trend: asking complete strangers for money via social media.</p>
<p>The process is simple. Write a social media post about a financial need. Include details for your preferred peer-to-peer payment platform: a <a href="https://cash.app/help/us/en-us/3123-cashtags">$Cashtag</a> on Cash App, a <a href="https://help.venmo.com/hc/en-us/articles/235432448-Check-or-Edit-Your-Username">username for Venmo</a>, a custom <a href="https://www.paypal.com/paypalme/">PayPal.me link</a>. Share the post. Within a few clicks, a stranger can stumble upon your post and complete the requested cash transfer. </p>
<p>By design, peer-to-peer payment platforms remove fees incurred through credit card donations or more formal crowdfunding websites. The full donation goes directly and instantly to the person in need. </p>
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<h2>The difference from crowdfunding</h2>
<p>Some might be quick to categorize this practice as traditional crowdfunding, but <a href="https://www.academia.edu/44343988/Social_Media_based_Crowdfunding_among_Marginalized_Populations_Unintended_Consequences_of_the_TransCrowdFund_Movement_on_Twitter?source=swp_share">my research</a> suggests social media-based cash transfers are unique in a few ways.</p>
<p><a href="https://doi.org/10.1177/1461444814558906">Traditional crowdfunding</a> is shaped like a funnel: many donors contributing to one centralized recipient, such as a civic organization or charitable cause. Crowdfunding websites like GoFundMe and Kickstarter provide a central portal for tracking and safeguarding money exchange. </p>
<p>Social media-based requests for money are shaped more like a web: many potential donors contributing to many recipients in one-off transactions. This web of financial requests is sprawling on social media. There’s no website to visit to track the progress of a fundraiser, and fewer safeguards are in place <a href="https://www.adlawaccess.com/2016/11/articles/do-you-venmo-ftc-spotlight-on-peer-to-peer-payments-and-crowdfunding/">to protect donors from scams</a>.</p>
<p>In traditional crowdfunding, <a href="https://doi.org/10.1007/978-3-319-66119-3_8">the financial goals are lofty</a>, sometimes in the hundreds of thousands of dollars. Crowdfunders create formal campaigns with detailed explanations of why they are raising money, how the money will be used and who will benefit. Progress toward a financial goal is publicly tracked. </p>
<p>In contrast, social media-based solicitations allow for smaller, one-time requests, like covering a utility bill. It’s akin to spotting a stranger a few bucks. </p>
<p>This web of financial requests and offers is often catalyzed by a common hashtag. For example, <a href="https://twitter.com/hashtag/settlersaturday?lang=en">#SettlerSaturday</a> encourages donations to Indigenous people and causes; <a href="http://blackyouthproject.com/transcrowdfund-the-radical-redistribution-of-wealth-we-need/">#TransCrowdFund</a> solicits financial support for transgender and nonbinary individuals; and <a href="http://www.emmalindhagen.com/2017/12/adventboost-2017-day-1-showupforwishes/">#ShowUpForWishes</a> provides a space for people to make more general financial requests for things they want – not just what they need.</p>
<p>The hashtags create communities for people to seek financial support. These communities engage in “<a href="https://www.urbandictionary.com/define.php?term=signal+boost&defid=4480596">signal boosting</a>” by sharing a post widely within and across social media platforms, in hopes of getting more attention. Shares, likes, retweets and cross-posting create more potential for these social media-based cash requests to go viral, which can lead to more donations.</p>
<p>With a steady stream of financial requests coming through social media, individual donors can act as a dam for individuals to survive. </p>
<h2>Living Venmo to Venmo</h2>
<p>But as these requests for money become more popular, what does it say about the lack of public resources for individuals struggling to pay for needs like rent, tuition or surprise medical bills?</p>
<p>During the coronavirus outbreak, people flocked to traditional crowdfunding websites like GoFundMe to try to save their businesses or cover health care costs. Most of these campaigns, however, <a href="https://www.nytimes.com/2020/03/26/style/gofundme-coronavirus.html">fail to meet their goals</a>.</p>
<p>These larger campaigns have overshadowed the constant flurry of smaller requests for digital handouts on social media.</p>
<p>To me, both types of requests – large and small – reflect a systemic failure to protect citizens facing financial hardship. <a href="https://poverty.ucdavis.edu/article/war-poverty-and-todays-safety-net-0">Government programs</a> like <a href="https://www.cbpp.org/research/family-income-support/tanf-benefits-still-too-low-to-help-families-especially-black">Temporary Assistance for Needy Families</a> and <a href="https://www.washingtonpost.com/business/economy/13-million-people-in-poverty-are-disconnected-from-the-social-safety-net-most-of-them-are-white/2019/02/04/807516a0-2598-11e9-81fd-b7b05d5bed90_story.html">food stamps</a> provide much-needed resources to help people make ends meet. But research suggests many of the people most in need <a href="https://www.washingtonpost.com/business/economy/13-million-people-in-poverty-are-disconnected-from-the-social-safety-net-most-of-them-are-white/2019/02/04/807516a0-2598-11e9-81fd-b7b05d5bed90_story.html">are often disconnected</a> from the social safety net, as individual eligibility varies and states implement these programs differently. </p>
<p>For many, living paycheck to paycheck has been transformed into living Venmo to Venmo. It would be easy to classify the rise in requests for digital handouts on social media as just another iteration of the “begging poor” – bringing to mind all of the <a href="https://journals.sagepub.com/doi/abs/10.1177/1049732308330246?casa_token=bwV9dLVlcrYAAAAA:OyA3MyXODeFxJUEXlLdaiGG0w8dRWTMPe2vKk_sm4Y8i265WsqUQ2R62g3UpDJrF405sEkY1LQudig">morality myths and stigmas</a> surrounding poverty.</p>
<p>[<em>Deep knowledge, daily.</em> <a href="https://theconversation.com/us/newsletters/the-daily-3?utm_source=TCUS&utm_medium=inline-link&utm_campaign=newsletter-text&utm_content=deepknowledge">Sign up for The Conversation’s newsletter</a>.]</p>
<p>But it’s bigger than that. The pandemic <a href="https://theconversation.com/4-ways-covid-19-has-exposed-gaps-in-the-us-social-safety-net-138233">has revealed gaps</a> in the social safety net, and the reliance on digital handouts is a microcosm of the <a href="https://www.cbpp.org/research/poverty-and-inequality/tracking-the-covid-19-recessions-effects-on-food-housing-and">financial uncertainty</a> facing Americans. </p>
<p>Donating to strangers – and asking for digital handouts – is not a bad thing. But the ad hoc willingness of individual Americans to support one another financially shouldn’t act as a substitute for more permanent, systemic solutions.</p><img src="https://counter.theconversation.com/content/146742/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jenna Drenten does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The internet ushered in new ways of raising money, particularly with the rise of crowdfunding. But making appeals for cash on social media represents an entirely different phenomenon.Jenna Drenten, Associate Professor of Marketing, Loyola University ChicagoLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1043892018-10-28T18:55:19Z2018-10-28T18:55:19ZWhy car sharing had a slow start in Australia - and how that’s changing<figure><img src="https://images.theconversation.com/files/242192/original/file-20181025-71011-1hmyzhq.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Private cars with built-in sharing technology will soon be available in Australia.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/car-sharing-pick-me-auto-drive-659894737?src=P1wdJfbe8qEW0vBU6JdRkg-1-7">Shutterstock</a></span></figcaption></figure><p>Car sharing arrived on the Australian scene in the early 2000s. These are commercial services that give people access to vehicles they can rent by the hour. </p>
<p>Services in Australia currently include <a href="https://www.goget.com.au/">GoGet</a> and <a href="https://www.carnextdoor.com.au/">Car Next Door</a>. While GoGet has a fleet of vehicles available for rent, Car Next Door supports private vehicle owners renting out their cars to others in the community (kind of like Airbnb).</p>
<p>Car sharing is now an established transport option in most major Australian cities, but it’s faced its fair share of teething problems. Some of these are unique to Australia, with its powerful system of private car dependency. We’re now on track to overcome many of these issues, but more work is required to really make Australian car sharing a success. </p>
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Read more:
<a href="https://theconversation.com/1-000-cars-and-no-garage-why-car-sharing-works-31179">1,000 cars and no garage – why car-sharing works</a>
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</p>
<hr>
<h2>Why is car sharing important?</h2>
<p>Car sharing is key component of any transition away from a dependence on private cars. Most of us are now aware that using private cars is one of the <a href="https://www.climatecouncil.org.au/wp-content/uploads/2017/09/FactSheet-Transport.pdf">most carbon intensive</a> and <a href="https://academic.oup.com/jpubhealth/article/33/2/160/1591440">least healthy</a> ways to get around. </p>
<p>To challenge the place of the private car, we need to supply a network of options. The hope is that owning a car will one day become unnecessary in an integrated system of public and active transport options, where shared cars would play a role in more complex or load-carrying trips. </p>
<p>Car sharing is particularly important in a world on the cusp of the arrival of autonomous vehicles (AVs). AVs could herald either “carmageddons” of congestion, where private autonomous vehicles roam the city at the whim of their owners, or a more palatable system, where on-demand AV services seamlessly match trips to riders. Which version of the future we get depends on whether AVs are shared or privately owned.</p>
<p>Here are some key factors that will shape future success of car sharing in Australia. </p>
<h2>1. Car sharing is an inner city thing</h2>
<p>Heading the list of barriers to increased uptake of car sharing is that it’s currently a service that is generally contained within the inner urban core of our cities.</p>
<p>Commercial options – where companies maintain their own fleet of vehicles – rely on a critical mass of people, the allocation of prized on-street car parking, and a viable public transport system to satisfy the day-to-day mobility needs of their members. These things generally don’t exist outside of the inner city, so neither does commercial car sharing. </p>
<p>Peer-to-peer (P2P) options – where the carsharing company facilitates the sharing process between individuals – offer some hope of a breakthrough in this space. P2P car sharing is more likely to succeed in lower density areas because it does not need the critical mass of users, nor the gift of on-street car parking. </p>
<p>While the slow creep of P2P services into the suburbs is a process bound by the notorious sluggishness of cultural adjustment, we are witnessing some increased suburbanisation of car sharing as a result of P2P services.</p>
<h2>2. Australians don’t share</h2>
<p>The need for cultural adjustment raises a second key barrier to car sharing in Australia. Anyone living through the recent <a href="https://www.huffingtonpost.com.au/2017/09/18/what-are-those-random-yellow-bicycles-doing-in-your-neighbourhood_a_23212729/">bike sharing</a> fiasco in Sydney or Melbourne, where bikes were <a href="https://theconversation.com/to-end-share-bike-dumping-focus-on-how-to-change-peoples-behaviour-90016">dumped in parks and rivers</a>, will attest to the fact that (some) Australians are not great at respecting property that is shared. In fact, there are <a href="https://theconversation.com/three-reasons-why-share-bikes-dont-fit-australian-culture-90312">indices of national culture</a> that could have easily predicted the vandalism associated with this catastrophe. </p>
<p>And when it comes to our cars, <a href="https://theconversation.com/to-get-people-out-of-cars-we-need-to-know-why-they-drive-27279">we are a nation particularly attached</a> to the independence, autonomy and privacy of our own vehicle. Sharing – whether it be lending your own car to a stranger, or making use of a car regularly driven by others – challenges these notions. </p>
<p>But parts of our cities are slowly but surely adapting to living in closer proximity to one another – albeit by necessity, not by choice. And as a nation, we are becoming less attached to owning the spaces and objects we depend upon. </p>
<p>This shift away from personal space and private ownership can primarily be seen in changes to residential densities and tenure-types. But it’s also seen in the way we work, play and eat. Think of the rise of <a href="https://theconversation.com/the-rise-and-fall-of-the-hot-desk-say-hello-to-activity-based-working-26622">hot-desking</a>, the shift from private backyards to <a href="https://theconversation.com/tweet-all-about-it-people-in-parks-feel-more-positive-95290">public parks</a>, and the move from the family table to the <a href="http://www.agriculture.gov.au/ag-farm-food/food/publications/foodmap-a-comparative-analysis">café</a>.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/freeing-up-the-huge-areas-set-aside-for-parking-can-transform-our-cities-85331">Freeing up the huge areas set aside for parking can transform our cities</a>
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</p>
<hr>
<h2>3. It’s all too hard</h2>
<p>At first, car sharing wasn’t easy. Car sharing parking spaces were few and far between, insurance arrangements were somewhat obtuse, and the platform for sharing enforced rigid time frames and payment structures. </p>
<p>The pioneers of car sharing in Australia – both the business entrepreneurs and the policy makers – have had to navigate some pretty tricky regulatory, legislative and technological territory. </p>
<p>Commercial operations have negotiated with local government for parking space, and P2P ventures have had to work through complex registration and insurance regulations that vary from state to state. Both approaches have had to design and implement technology that allows cars to be booked and accessed seamlessly. </p>
<p>Fortunately, for those doing the sharing, a lot of these barriers have now been broken down. Most metropolitan local councils now maintain a policy for the allocation of car sharing parking spaces. Insurance cover for P2P sharing is now a standard option. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/cars-cost-more-in-the-country-heres-some-ways-around-it-22790">Cars cost more in the country: here's some ways around it</a>
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<hr>
<h2>The future of car sharing</h2>
<p>There are changes on the horizon all designed to make the concept of sharing even easier. One of the most interesting is the imminent arrival of “share ready” cars on the <a href="https://www.news.com.au/technology/innovation/motoring/motoring-news/how-your-next-car-could-make-you-money/news-story/57da162e590b2a92c9d0754bc2cde7c0">Australian market</a>. </p>
<p>Designed primarily for the P2P market, these are cars that come with an app, which connects owners’ vehicles to their phones, enabling them to list their car for rent on car sharing websites. The sharer will then be able to access and drive the vehicle using their smart phone, entirely negating the need for traditional keys. </p>
<p>Involvement of the auto-industry is always an interesting development in car sharing. It has been proven empirically that people who use car sharing services <a href="https://www.sciencedirect.com/science/article/abs/pii/S0739885915000542">drive less and own less cars</a>. This implies less business for car manufacturers. Does this mean the car industry is accepting fissures in the dominance of private cars and protecting whatever share of the transport market it can? Or is it another way of keeping cars king in our cities? </p>
<p>Only time will tell. For the time being, car sharing’s survival is one positive sign that a sustainable transport future is possible.</p><img src="https://counter.theconversation.com/content/104389/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jennifer L. Kent does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Car sharing is an important component of any transition towards a more sustainable transport system, but the practice has had some teething issues in Australia.Jennifer L. Kent, Research Fellow, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/453912015-07-30T13:39:54Z2015-07-30T13:39:54ZShould we love Uber and Airbnb or protest against them?<p>An angry crowd <a href="http://www.theguardian.com/technology/2015/jul/30/uber-drivers-attacked-outside-mexico-city-airport-as-taxi-drivers-demonstrate">has attacked</a> Uber cars with bars and stones outside Mexico City airport, the latest in a series of worldwide protests against the ride-hailing app. More than 1,000 taxi drivers <a href="http://www.i24news.tv/en/news/international/americas/79635-150725-taxi-drivers-block-streets-of-rio-in-protest-against-uber">blocked streets</a> in Rio de Janeiro a few days ago, and the service has been restricted or banned in the likes of <a href="http://www.bbc.co.uk/news/business-33382006">France</a>, <a href="http://www.ft.com/cms/s/0/d522e39e-2a47-11e5-8613-e7aedbb7bdb7.html">Germany</a>, <a href="http://www.ft.com/cms/s/0/d522e39e-2a47-11e5-8613-e7aedbb7bdb7.html">Italy</a> and <a href="http://www.latimes.com/business/la-fi-the-download-uber-in-asia-20150728-story.html#page=1">South Korea</a>. Protests <a href="http://www.sfweekly.com/thesnitch/2014/10/27/protesters-accuse-airbnb-of-killing-san-franciscos-neighborhoods">have</a> also <a href="http://www.theatlantic.com/technology/archive/2014/04/remember-the-great-airbnb-protests-of-2014/361464/">been staged</a> against Airbnb, the platform for renting short-term accommodation. </p>
<p>Neither platform shows any signs of faltering, however. Uber is available in 57 countries and <a href="http://fortune.com/2015/06/29/report-ubers-huge-growth-comes-with-huge-losses/">produces</a> hundreds of millions of dollars in revenues. <a href="https://www.airbnb.co.uk/about/about-us">Airbnb</a> is available in more than 190 countries, and boasts more than 1.5 million rooms. </p>
<p>Journalists and entrepreneurs have been quick to coin terms that try to capture the social and economic changes associated with such platforms: the <a href="http://www.theguardian.com/books/2015/jul/17/postcapitalism-end-of-capitalism-begun">sharing economy</a>; the <a href="http://www.businessinsider.com/the-on-demand-economy-2014-7?IR=T">on-demand economy</a>; the <a href="http://wealthofthecommons.org/essay/peer-peer-economy-and-new-civilization-centered-around-sustenance-commons">peer-to-peer economy</a>; and so on. Each perhaps captures one aspect of the phenomenon, but doesn’t make sense of all its potentials and contradictions, including why some people love it and some would smash it into pieces. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/90299/original/image-20150730-25742-nhep2n.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/90299/original/image-20150730-25742-nhep2n.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/90299/original/image-20150730-25742-nhep2n.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=366&fit=crop&dpr=1 600w, https://images.theconversation.com/files/90299/original/image-20150730-25742-nhep2n.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=366&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/90299/original/image-20150730-25742-nhep2n.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=366&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/90299/original/image-20150730-25742-nhep2n.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=460&fit=crop&dpr=1 754w, https://images.theconversation.com/files/90299/original/image-20150730-25742-nhep2n.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=460&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/90299/original/image-20150730-25742-nhep2n.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=460&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">How Mexican taxi drivers feel about the sharing economy.</span>
<span class="attribution"><a class="source" href="http://wfla.com/2015/07/29/video-uber-drivers-attacked-in-mexico-city/">YouTube</a></span>
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<p>Economic sociologists believe markets are always based on an underlying infrastructure that allows people to find out what goods and services are on offer, agree prices and terms, pay, and have a reasonable expectation that the other party will honour the agreement. The oldest example is the personal social network: traders hear what’s on offer through word of mouth and trade only with those they personally know and trust. </p>
<p>In the modern world we can do business with strangers, too, because we have developed institutions to make this reliable, like private property, enforceable contracts, standardised weights and measures, and consumer protection. They are part of a long historical continuum, from ancient trade routes with their customs to medieval fairs with codes of conduct to the state-enforced trade laws of the early industrial era. </p>
<h2>Natural selection</h2>
<p><a href="http://www.haas.berkeley.edu/groups/pubs/books/williamson/economic_institutions.html">Institutional economists</a> and <a href="http://www.cambridge.org/gb/academic/subjects/history/european-history-general-interest/rise-western-world-new-economic-history">economic historians</a> theorised in the 1980s that these have gradually been evolving towards ever more efficient forms through natural selection. People switch to cheaper, easier, more secure and more efficient institutions as new technology and organisational innovations make them possible. Old and cumbersome institutions fall into disuse, says the theory, and society becomes more efficient and economically prosperous as a result. </p>
<p>It is easy to frame platforms as the next step in such a process. Even if they don’t replace state institutions, they can plug gaps. For example enforcing a contract in court is expensive and unwieldy. Platforms provide cheaper and easier alternatives through reputation systems where participants rate each other’s conduct and view past ratings. </p>
<p>Uber does this with government-licensed taxi infrastructures, for instance, addressing everything from quality and discovery to trust and payment. Airbnb provides a similarly sweeping solution to short-term accommodation rental. The sellers on these platforms are not just consumers seeking to better use their resources, but also firms and professionals switching over from the state infrastructure. It is as if people and companies were abandoning their national institutions and emigrating en masse to Platform Nation.</p>
<h2>Downside or upside?</h2>
<p>The natural selection theory argues that the government shouldn’t try to stop people from using the likes of Uber and Airbnb, nor impose its evidently less efficient norms on them. Let people vote with their feet. But is that an oversimplification? </p>
<p>If buyers switch to new institutions, for instance, sellers may have little choice but to follow. Even if taxi drivers don’t like Uber’s rules, they may find there is little business to be had outside the platform and switch anyway. In the end, whether the market shifts can boil down to <a href="http://press.princeton.edu/titles/7206.html">power rather than choice</a>. </p>
<p>Even when everyone participates willingly, the arrangement might be bad for society. It might <a href="http://www.cambridge.org/gb/academic/subjects/history/economic-history/institutions-and-european-trade-merchant-guilds-10001800">adversely affect</a> third parties, for example, such as Airbnb guests annoying neighbours through noise, traffic or being unfamiliar with the local rules. In the worst case, a platform can make society less efficient by creating a “free-rider economy”.</p>
<p>If these kinds of conflicting interests are reconciled, it is through the political institutions that govern the markets. Social scientists can often find out more about a market by looking at its political institutions than comparative efficiency. Take the hotel industry. Local governments try to balance the interests of hoteliers and their neighbours by limiting hotel business to certain zones. Airbnb has no such mandate to address the interests of third parties on an equal footing. Perhaps because of this, 74% of Airbnb properties <a href="https://www.airbnb.co.uk/economic-impact">are not</a> in the main hotel districts, but often in ordinary residential blocks. </p>
<p>Of course, government regulators are at risk of being captured by incumbents, or at the very least creating rules that benefit incumbents to the detriment of possible future participants. An example would be taxi-licensing systems that strictly limit the numbers of cab operators. Whatever quality assurance this offers customers, among the main losers are excluded would-be drivers. </p>
<p>Against this background, platforms can look like radical reformers. For example Uber <a href="http://www.huffingtonpost.co.uk/2015/03/10/uber-says-itll-create-1-million-jobs-for-women-by-2020_n_6839342.html">aims to</a> create 1m jobs for women by 2020, a pledge that would likely not be possible if it adhered to government licensing requirements, as most licences are owned by men. Having said that, Uber’s definition of a “job” is much more precarious and entrepreneurial than the conventional definition. My point here is not to take sides, but to show that their social implications are very different. Both possess flaws and redeeming qualities, many of which can be traced back to their political institutions and whom they represent.</p>
<p>What kind of new economic institutions are platform developers creating? How efficient are they? What other consequences do they have? Whose interests are they geared to represent? These are the questions that bureaucrats, journalists, and social scientists ought to be asking. I hope we will be able to discover ways to take what is good from the old and the new, and create infrastructure for an economy that is as fair and inclusive as it is efficient and innovative.</p><img src="https://counter.theconversation.com/content/45391/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Vili receives funding from the European Research Council.</span></em></p>Some theorists suggest that such platforms are making our world more efficient by natural selection. The reality is a little more complicated.Vili Lehdonvirta, Associate Professor and Senior Research Fellow, Oxford Internet Institute, University of OxfordLicensed as Creative Commons – attribution, no derivatives.