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.
"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.