The scorching solar industry needs a shock doctrine to stabilize its forthcoming deflation, once the Obama administration’s Investment Tax Credit is repealed. Stanford has the sloppy manual.
“Instead of falling off a cliff, the industry would instead have to weather a series of smaller shocks as it works through a critical developmental phase,” explained Stanford Graduate School of Business professor Stefan Reichelstein’s new study, co-authored with research associate Stephen Comello, offering an three-stage alternative to solar’s suicide dive. “The researchers’ findings suggest that the industry should be able sustain its momentum through those smaller shocks, leaving it poised to achieve true cost competitiveness by 2025.”
Of course, like all economic shock doctrines — deregulation, austerity, ad nauseam — this medicine would be better if it wasn’t delivered at all.