Tag Archives: Regulation

The VW “Scandal,” by Eric Peters

A different and thought-provoking take on the VW mess, from Eric Peters on a guest post at theburningplatform.com:

This could kill VW – until recently (until last week) the world’s largest car company.

But unlike say the exploding Pinto fiasco this is not a story about defective cars. It is a story about defective public policy.

None of the VW cars now in the crosshairs are unreliable, dangerous or shoddily built. They were simply programmed to give their owners best-case fuel economy and performance. Software embedded within each vehicle’s computer – which monitors and controls the operation of the engine – would furtively adjust those parameters slightly to sneak by emissions tests when the vehicle was plugged in for testing. But once out on the road, the calibrations would revert to optimal – for mileage and performance.

Now, the hysterical media accounts of the above make it seem that the alteration via code of the vehicles’ exhaust emissions was anything but slight. Shrill cries of up to “40 times” the “allowable maximum” echo across the land.

Well, true.

But, misleading.

Because not defined – put in context.

What is the “allowable maximum”?

It is a very small number.

Less than 1 percent of the total volume of the car’s exhaust. We are talking fractions of percentages here. Which is why talk of “40 percent” is so misleading and, frankly, deliberately dishonest.

Left out of context, the figure sounds alarming. As in 40 percent of 100 percent.

As opposed to 40 percent of the remaining unscrubbed 1-3 percent or .05 percent or whatever it is (depending on the specific “harmful” byproduct being belabored).

The truth – explained rarely, for reasons that will become obvious – is that the emissions of new cars (and recent-vintage cars) have been so thoroughly cleaned up they hardly exist at all. Catalytic converters (and especially “three way” catalytic converters with oxygen sensors) and fuel injection alone eliminated about two-thirds of the objectionable effluvia from the exhaust stream – and they’ve been around since the 1980s. Most of the remaining third was dealt with during the ’90s, via more precise forms of fuel delivery (port fuel injection replaced throttle body fuel injection) and more sophisticated engine computers capable of real-time monitoring and adjustment of parameters, and of alerting the vehicle’s owner to the need for a check.

Since the late ’90s/early 2000s, the industry has been chasing diminishing returns. The remaining 3 percent or so of the exhaust stream that’s not been “controlled.”VW 3

You may begin to see the problem here.

Internal combustion is always going to produce some emissions. The engineers have picked the low hanging (and mid-hanging) fruit. But the EPA insists on what amounts to a zero emissions internal combustion engine.

Which, of course, is impossible.

Which may be just the point.

Set unattainable standards – then denounce the victim for “noncompliance.”

To continue reading: The VW “Scandal”

He Said That? 9/20/15

From Holman Jenkins, columnist at The Wall Street Journal, “Obama’s Cable Monopoly Boom, ” September 19-20, 2015:

No industry, except maybe health insurers, has benefitted so much from Obama policy as cable companies. Their stocks have been pretty much straight up since the president introduced has net-neut [net neutrality] regulation policy in November.

Overwhelmingly, the signal from the markets is that cable’s dominance of fast broadband is less under threat today that it was the day before the Federal Communications supinely aligned itself with the Obama diktat.

The latest proof is Moroccan-born French entrepreneur Patrick Drahi’s $17.7 billion deal to take over Cablevision, America’s fourth-biggest cable operator, at a towering valuation…

…Where will he find revenue to make his play pay?

Answer: by cannibalizing the increasingly vulnerable revenues the big wireless operators generate from providing cell service….

A more pressing likelihood today, though, is that cable operators, with their entrenched position in local broadband and burgeoning Wi-Fi networks, will be the ones to reduce the cellular operators to vassalage. Mr. Drahi has already hinted that, after the bloodletting he expects in wireless, he looks forward to picking up a U.S. wireless operator cheap….

Maybe we shouldn’t be surprised. Regulation always favors incumbents because incumbents are best positioned to use politics to entrench their incumbency. But it will be a surprise to those net-neut advocates who made cable their whipping boys, and who now discover regulation is actually strengthening rather than weakening cable’s hold on the broadband business. One who has already figured this out is our new French cable guy, Mr. Drahi.

This was as predictable as it was stupid, see “The Net Neutered,” SLL, 2/17/15.