Engineering Decisions
A Cost Variable That Eats the Decision
The Real Calculation
Three Choices When Policy Doesn't Exist Yet
Defensible if you are explicit, but invisible to the user. They see one TCO and do not know what it depends on. Refuse to project past the known horizon.
Cleanest, but useless for the actual decision - fleet operators are choosing trucks they will own through 2032 today. Model multiple scenarios as a user input.
Show the TCO under each scenario and let the user form their own view about which is plausible. I went with the third. The scenarios live in the UI as a radio toggle, with a default that is deliberately conservative.
The Three Scenarios
What This Forces You to Build
- The CO2 component shifted in 2024 and may shift again as the EU revises Directive 2022/362.
- Diesel and HVO prices are volatile enough that a six-month-old default is wrong.
- Electricity contracts vary by site, by time of day, and by negotiating power. A single national average is a fiction useful only in the absence of better information.
Why "Conservative Default" Is Not Neutral
Why not default to 'exemption extended'?
Why not default to 'full rate'?
Why partial discount in the middle?
Working Around Confidential Data
What Generalizes
- Identify the rates that are regulatory in origin. They are the ones you cannot negotiate and cannot predict.
- Treat them as inputs, not constants. Even if they do not move during your modeling window, the next legislative cycle is rarely far away.
- When the future is genuinely unknown, model the cases. A scenario toggle is honest. A single "best estimate" is a guess pretending to be an answer.
- Document the source of every default. When the rule changes, you will want to know where to update from.