Using a Loyalty Reward Token Program to Reduce the Cost of Solar Desalinated Water.

9 Pages Posted: 14 Feb 2019

See all articles by Nick Gogerty

Nick Gogerty

Carbon Finance Labs

Lynn Connolly

Harbor Peak LLC

Paul Johnson

Columbia Business School; Fordham University - Gabelli School Business; Gabelli Center for Global Investment Analysis

Date Written: January 30, 2019


Desalinated water is often created using fuels that contribute to atmospheric CO2. These decisions of fuel and technical methodology are made using a cost benefit analysis which often ignores externalities. In such situations, Solar and clean solutions may lose out.

Loyalty and reward mechanisms using tokens or credits for consumers are often used to create value for marketing consumer goods, etc.

A lesser known fact is that the economics of loyalty or reward mechanisms can function like currencies with similar economic value properties emerging.

Currencies function like social protocols for the transfer of value among participants in an economic network. As such, the value of a currency emerges as a direct function of the number of participants. This emergent value effect has been observed in 50 of the world’s largest currencies, gold, and even Bitcoin. The cumulative economic effect of this currency phenomenon is valued at $16 trillion USD. The effect is emergent and ranges from $500-$5,000 per participant using a value transfer protocol be it currency, token or credit.

The potential to apply the positive economic externality effects of currency networks to help offset the negative externalities associated with carbon pollution are worth studying and applying.

The users of desalinated water are a collective economic network. As such they can create economic value which can be applied to reduce the cost of solar desalinated water, making solar a more attractive option than the use of fossil fuels in the desalination process. The proposed mechanism for this is a Token or reward scheme which distributes a portion of tokens to the users of said water and the purchasing agent or utility of said water.

Keywords: solar, desalinization, economic, blockchain, incentives, finance, water, environment, behavior

Suggested Citation

Gogerty, Nick and Connolly, Lynn and Johnson, Paul, Using a Loyalty Reward Token Program to Reduce the Cost of Solar Desalinated Water. (January 30, 2019). Available at SSRN: or

Nick Gogerty

Carbon Finance Labs ( email )

320 post road
Suite #150
Darien, CT 06820
United States


Lynn Connolly (Contact Author)

Harbor Peak LLC ( email )

1205 SW Beaver St
Fort White, FL 32038
United States
9084320512 (Phone)


Paul Johnson

Columbia Business School ( email )

3022 Broadway
New York, NY 10027
United States

Fordham University - Gabelli School Business ( email )

113 West 60th Street
Bronx, NY 10458
United States

Gabelli Center for Global Investment Analysis ( email )

113 West 60th Street
New York, NY 10023

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