Driverless Cars May Give The Economy Quite a Bump
Written By: Mikey Kirkbride
The future is upon us ladies and gentlemen. The testing of Autonomous Vehicles (AV’s) has started. It seems most major car manufacturers have begun the testing, even google is getting in on the fun. Some states have even started the licensing process for these vehicles, such as; California, Florida, and Nevada. Experts are also predicting that these cars will have a massive impact on the automotive industry by the year 2020. The real question is what kind of impact will it have on the economy, it may be more than just the initial revenue from the car sales. These cars are going to save the consumers a lot of money. A lot of this will be part of the fact that these cars will reduce a lot of the car accidents that happen. 40% of all fatal crashes are caused by either drugs, alcohol, or fatigue. This are all part of the human factor of driving. Take that away and there is an immediate reduction in accidents. The cars computer can’t be under the influence of drugs or alcohol, and it can’t get tired. Also up to 90% of crashes are the result of human error rather than equipment malfunction of the car, so taking the human aspect out of driving will not only save lives, but also save money. A highly conservative estimate at 10% of the market being AV’s estimates 1,100 lives saved annually, 211,000 fewer crashes annually, and 5.5 billion dollars in economic savings. These cars are also able to better sense the movement of surrounding vehicles, leading to more efficient driving and braking, which will increase the fuel economy of these cars leading consumers to save more money in gas. 
This graph shows several different scenarios of possible living conditions in the U.S. in for the future, and how autonomous cars will save the consumers money. Even in the bear case autonomous cars will save people almost one trillion dollars. That number is absurd. Even though it will still be a little while before these cars hit the market, and there will almost surely be a substantial transition period, these cars seem to be a no brainer for the economy.
Works Cited
"Morgan Stanley — the Economic Benefits of Driverless Cars." RobotEnomics. N.p., 07 Dec. 2015. Web. 18 Apr. 2017.
Schiller, Ben. "Driverless Cars Sound Awesome, But The Actual Economic Impact Is Going To Blow Your Mind." Fast Company. Fast Company, 30 Oct. 2013. Web. 18 Apr. 2017.
I think incorporating such autonomous cars into our future seems like an awesome idea, and looking at the stats we see that this invention saves lives as well. While the concept may face adversity through car enthusiasts it may also face ethical concerns that include not having a designated driver when everybody in the vehicle is out partying. It can also pose problems for the police as the vehicle's algorithm cannot possibly include all dangerous situations.
ReplyDeleteI think that autonomous cars are a great idea that can save people money, and help the economy. I still question the fact that these are fool proof, and that these cannot get an in accident. Personally, I would not trust myself to ride in one of these for at least a couple years after they hit the market. The benefits are definitely there, but I think that this market is still a little farther away than expected.
ReplyDeleteI'm not sure how long it will be before this predicted economic explosion will be, as I'd imagine that the cars would be quite expensive, at least initially. The proportion of driverless cars on the road will likely be the equivalent of exotic cars, which are not very common. However, it is interesting to note that only 90% of accidents are caused by human error. What would be another cause, if humans were not to blame. Although computer error would likely be a cause of accidents so there would still be some economic damage.
ReplyDeleteI agree that autonomous cars would be beneficial for consumers, and creating cheaper products could potentially also be beneficial for producers as well, since a cheaper product means either higher profit or a lower price for consumers, which means they will be more likely to buy the product. To me, it's not surprising that at least 90% of accidents are caused by human error. By producing a car that drives itself, 90+% of accidents would probably be prevented. However, we have to think about the fact that computerized cars would likely need more repairs and therefore be more likely to be a cause of an accident, so that would likely still be a problem. Overall, I think that autonomous vehicles would be beneficial to both consumers and producers.
ReplyDeleteAlthough self driving cars would be nice because of their lack of human need and positive economic impact, I think the transition period to this way of life would be quite dangerous. Not everyone is going to buy one of these cars when they come out, I would imagine only a select few would. So, I wonder what would happen on the roads between human driven cars and autonomous cars. This could potentially create more accidents, or there may not be much of an impact, it’s hard to tell since this is very new technology. In my opinion, the car would be so perfect in it’s driving that it would not work out well with human driven traffic. A lot of people speed on the roads so by having cars that go the exact speed limit might not work well. Or an AV could get hit by human driven vehicle in a four way stop because as you said 90% of accidents are on the fault of a human. Although the ideas are really interesting and exciting as they would be beneficial to everyone, actually making it happen seems to bring up a lot of questions.
ReplyDeleteThis is an interesting topics and I haven't heard much about what good could happen from self driving cars. I have heard more about the negative accidents that have happened relating self driving cars. They have gotten out of control and killed people. I do agree with you in saying that self driving cars could have a positive effect on the economy. However, I feel like the transition period between normal cars and self driving will take a while since people are used to trusting their regular cars.
ReplyDeleteSelf driving cars are something that I still cannot fathom. How can someone program a car so that it can stop for red lights? Pay for tolls? Know when someone is walking in front of them? How to merge lanes? How to park? All these questions circle my mind when I think of self-driving cars. I know that I would not be able to trust these self driving machines until I see them in action. As many people know, seeing is believing.
ReplyDeleteI don't think self driving cars will ever take over the car industry. I along with most Americans love to drive and will never give up my driving right. I also don't trust self driving cars. What if situations came up that weren't programmed by the car. Overall I see it as a safety issue, and do not trust it.
ReplyDeleteWhile the possibilities for economic growth are clear, it is also important to account for consumer preferences. Much of the population that could currently afford such vehicles overlaps with their greatest skeptics. Driver-less cars and other technology that diminishes the need for human skill tend to scare both consumers and insurance companies that have to deal with ethical repercussions. Because people are already skeptical, every minor accident will result in media backlash, possibly harming an auto company's overall reputation for safety in the industry. I do think that self driving cars will eventually gain market share, but I doubt that the trend will rise as quickly as economics would potentially allow for.
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