On the economics of co-opting in energy sector

Abstract

The purpose of the work is to formulate the main provisions of the co-opting economy and detail them using the case method in the field of energy. Elizabeth Watkins and David Stark from Columbia University (USA) put forward the concept of Möbius organizational forms. Unlike traditional forms in business, Möbius forms do not Make, Buy or Cooperate, they Co-opt assets that do not belong to them. In 2019, the author of this work proposed the term "paraphernalia", which reflects the essence of the theory, but the name is more suitable for the Global Informality Project online encyclopedia, in which it was published. The co-opting economics is a social science about the production, distribution, exchange and consumption of goods and services with non-violent, but non-cooperative appropriation of assets belonging to others to satisfy one's own needs. The original formula of the co-opting economy is: money-commodity-money with a dash and an additional commodity (good) received for free, which is produced with the help of assets belonging to other owners. Theoretical studies were carried out using the case method. The effect of the co-opting economy is demonstrated on the example of the Sukha Balka mine (Kryvyi Rih). The mine has shafts hoists. In the process of moving loads, hoist generate electricity that is recovered and fed back into the network. The author introduces the conditional category "Mechanics", whose asset is mine hoist, and the category "Energeticians", whose asset is power distribution networks. The additional energy resource received by the Mechanics flows through the network to the Energeticians and becomes their property. There is a co-optation of assets that do not belong to Energeticians, with the receipt of a product that they use to meet their own needs. Such a virtual power plant does not belong to any energy company, but helps it to overcome the shortage of electricity during times of maximum load. Here, too, energy companies adhere to the economy of co-optation, because the generating assets they use are not their property. By adopting legislative acts on the introduction of the active consumer category, the state indirectly contributes to the development of the co-optation economy.