219
climate change, one proposal is to reward low-carbon investments through the creation of a monetary unit based on the social cost of carbon (SCC): in this example,
‘the SCC is neither a market price, nor the tax incorporated in the prices of goods.
It is a notional price defi ned as the social value of avoided CO 2 emissions’ (Aglietta
et al. 2015 : 4), which relies on a strong independent body to calculate exactly what
that price might be. In this approach, the monetary unit is assigned a politically
negotiated value, and not a value based on the whims of a capitalist marketplace.
5
To further this example around a SCC currency, the notion of démurage could be
of interest, defi ned as a negative incentive against the accumulation of
notes.
6 Démurage is a familiar term in complementary currencies, as it stimulates
the constant exchange of complementary currencies, against the accumulation of
wealth and towards its distribution. When a currency has been assigned démurage ,
the more money you accumulate over time, the lesser the value of that money. In the
example of a monetary unit based on the social cost of carbon, this could incentivise
the holders of this currency to accelerate their investments in low-carbon projects –
rather than hoard carbon credits for the purpose of fi nancial speculation. To return
to the founding metaphor of IE, the accumulation of benefi ts (i.e., endless profi ts) is
not apparent in ecosystems, which tend towards equilibrium. Démurage could limit
the effects of accumulation for a complementary currency that strives towards environmental goals. Whether this type of system would be state and independently
regulated (as Aglietta et al. suggest in relation to this version of a monetary unit
based on the SCC), driven by enterprises, or managed by everyday people remains
to be debated, along with an assessment of the resulting environmental impacts.
3.3 Crowdfunding in the Solidarity Economy:
towards IE Principles
Rifkin claims in his latest book ( 2014 ) that we are facing a transformation in modes
of production and operation, largely due to new technologies, and in a transition
from a capitalist to collaborative marketplace. The fi nancial sector is no exception
to this trend: promoted through the Internet and mobile payment services, new
5 There is much debate around the social cost of carbon (SCC), as well as the notion of a more
versatile shadow price of carbon (SPC) used internally by companies in their strategic planning
(CDP 2013 ) or in the policy arena (Price et al. 2007 ). The point here is not to discuss these developments in depth but rather illustrate the example of how a monetary unit could operate outside of the
marketplace, based on values assigned through policy negotiations – assuming democratic processes and a strong independent regulatory body.
6 The notion of démurage emerged in 1933, when the Austrian village of Wörgl introduced a new
currency designed with a negative incentive against the accumulation of the notes. The National
Bank of Austria closed down this experiment within a few months, fearing it would be replicated
to other regions and ultimately challenge the national currency (Sahakian 2014 ). The concept is
still alive today, however, with various community currencies building in démurage to insure the
circulation of notes.
10 The Social and Solidarity Economy: Why Is It Relevant to Industrial Ecology?
climate change, one proposal is to reward low-carbon investments through the creation of a monetary unit based on the social cost of carbon (SCC): in this example,
‘the SCC is neither a market price, nor the tax incorporated in the prices of goods.
It is a notional price defi ned as the social value of avoided CO 2 emissions’ (Aglietta
et al. 2015 : 4), which relies on a strong independent body to calculate exactly what
that price might be. In this approach, the monetary unit is assigned a politically
negotiated value, and not a value based on the whims of a capitalist marketplace.
5
To further this example around a SCC currency, the notion of démurage could be
of interest, defi ned as a negative incentive against the accumulation of
notes.
6 Démurage is a familiar term in complementary currencies, as it stimulates
the constant exchange of complementary currencies, against the accumulation of
wealth and towards its distribution. When a currency has been assigned démurage ,
the more money you accumulate over time, the lesser the value of that money. In the
example of a monetary unit based on the social cost of carbon, this could incentivise
the holders of this currency to accelerate their investments in low-carbon projects –
rather than hoard carbon credits for the purpose of fi nancial speculation. To return
to the founding metaphor of IE, the accumulation of benefi ts (i.e., endless profi ts) is
not apparent in ecosystems, which tend towards equilibrium. Démurage could limit
the effects of accumulation for a complementary currency that strives towards environmental goals. Whether this type of system would be state and independently
regulated (as Aglietta et al. suggest in relation to this version of a monetary unit
based on the SCC), driven by enterprises, or managed by everyday people remains
to be debated, along with an assessment of the resulting environmental impacts.
3.3 Crowdfunding in the Solidarity Economy:
towards IE Principles
Rifkin claims in his latest book ( 2014 ) that we are facing a transformation in modes
of production and operation, largely due to new technologies, and in a transition
from a capitalist to collaborative marketplace. The fi nancial sector is no exception
to this trend: promoted through the Internet and mobile payment services, new
5 There is much debate around the social cost of carbon (SCC), as well as the notion of a more
versatile shadow price of carbon (SPC) used internally by companies in their strategic planning
(CDP 2013 ) or in the policy arena (Price et al. 2007 ). The point here is not to discuss these developments in depth but rather illustrate the example of how a monetary unit could operate outside of the
marketplace, based on values assigned through policy negotiations – assuming democratic processes and a strong independent regulatory body.
6 The notion of démurage emerged in 1933, when the Austrian village of Wörgl introduced a new
currency designed with a negative incentive against the accumulation of the notes. The National
Bank of Austria closed down this experiment within a few months, fearing it would be replicated
to other regions and ultimately challenge the national currency (Sahakian 2014 ). The concept is
still alive today, however, with various community currencies building in démurage to insure the
circulation of notes.
10 The Social and Solidarity Economy: Why Is It Relevant to Industrial Ecology?