Quotulatiousness

January 8, 2023

QotD: Unintended consequences, fuel economy division

Filed under: Bureaucracy, Business, Economics, Government, Quotations, USA — Tags: , , — Nicholas @ 01:00

It’s a claim that you encounter a lot — an insult really — that people are buying bigger and bigger trucks to compensate for … something. Here’s one particularly cringeworthy example, because the person making it doesn’t seem to realize the go-kart he’s praising doesn’t meet US emissions standards.

    whenever americans say that they *need* a massive pickup truck that gets 12mpg just show them the Subaru Sambar

    utility vs. ego pic.twitter.com/NqexDbQcok
    — sam (@sam_d_1995) May 11, 2022

In response, a lot of people will defend their big truck purchase by saying they need a larger vehicle for their family, their business, or just because they like it. And to an extent, market forces are partly responsible for the increase in truck sizes, particularly when it comes to features like crew cabs. But it turns out that even a lot of people who like the big trucks don’t know the full story of how their trucks got so big.

The rest of the story is something the folks at Freakanomics might enjoy because it is a classic tale of unintended consequences. In brief, Obama-era fuel regulations incentivized automakers to build bigger trucks.

One particular goal of the Obama Administration was to increase fuel efficiency through the typical political process: telling someone else to do it. To that end, the DOT and the EPA handed down a series of standards that nearly doubled the miles-per-gallon requirements for cars and light trucks.

The administration praised their own new standards as “groundbreaking”. Transportation Secretary Ray LaHood predicted that the program would “result in vehicles that use less gas, travel farther, and provide more efficiency for consumers than ever before”.

The intent was to put pressure on automakers and force them to work out the engineering to meet the tough new standards. Their blindspot was failing to recognize that by placing the regulations solely on cars and small trucks, they had created a much simpler solution.

The new platform-based standards set fuel economy targets based on wheelbase and tread width, that is, how far apart the wheels are. If your vehicle is longer and wider, the fuel-economy targets shrinks. In the words of Dan Edmunds of Edmunds.com, “There was kind of an incentive to maybe stretch the wheelbase a couple of inches and set the tires maybe an inch [farther] apart, because you get a bigger platform and slightly smaller target.”

The regulations meant to get better mileage out of vehicles also made it easier for larger vehicles to meet fuel-efficiency standards. In what should have been an unsurprising move, when faced with the choice between reengineering their vehicles or simply going bigger, automakers chose to go bigger.

AndToddSaid, “The Real Reason Why Are Trucks Getting Bigger”, Todd’s Mischief blog, 2022-05-13.

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