Autonomous Vehicle Implementation Predictions: Implications For Transport Planning
Autonomous Vehicle Implementation Predictions: Implications For Transport Planning
Autonomous Vehicle Implementation Predictions: Implications For Transport Planning
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Info@vtpi.org
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By
Todd Litman
Victoria Transport Policy Institute
Abstract
This report explores autonomous (also called self-driving, driverless or robotic) vehicle benefits
and costs, and implications for various planning issues. It investigates how quickly self-driving
vehicles are likely to be developed and deployed based on experience with previous vehicle
technologies, their benefits and costs, and how they are likely to affect travel demands and
planning decisions such as optimal road, parking and public transit supply. This analysis
indicates that some benefits, such as more independent mobility for affluent non-drivers, may
begin in the 2020s or 2030s, but most impacts, including reduced traffic and parking congestion
(and therefore infrastructure savings), independent mobility for low-income people (and
therefore reduced need for public transit), increased safety, energy conservation and pollution
reductions, will only be significant when autonomous vehicles become common and affordable,
probably in the 2040s to 2050s, and some benefits may require prohibiting human-driven
vehicles on certain roadways, which could take even longer.
Table of Contents
Introduction .................................................................................................................................... 3
Autonomous Vehicle Operational Models ..................................................................................... 4
Benefits and Costs........................................................................................................................... 5
Reduced Stress, Improved Productivity and Mobility .............................................................................. 5
Ownership and Operating Costs ............................................................................................................... 7
Traffic Safety ........................................................................................................................................... 10
External Cost ........................................................................................................................................... 11
Benefit and Cost Summary ..................................................................................................................... 13
Development and Deployment..................................................................................................... 14
Experience with Previous Vehicle Technology Deployment .................................................................. 16
Deployment Predictions ......................................................................................................................... 18
Travel Impacts ............................................................................................................................... 20
Potential Conflicts and Solutions .................................................................................................. 26
Planning Implications .................................................................................................................... 27
Conclusions ................................................................................................................................... 31
References .................................................................................................................................... 34
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Introduction
The future is ultimately unknowable, but planning requires predictions of impending conditions
and needs (Shaheen, Totte and Stocker 2018). Many decision-makers and practitioners
(planners, engineers and analysts) wonder how autonomous (also called self-driving or robotic)
vehicles will affect travel and land use development patterns; road, parking and public transit
demands; traffic problems; and whether public policies should encourage or restrict their use
(APA 2016; Grush and Niles 2018; Guerra 2015; Kockelman and Boyles 2018; Levinson 2015;
Milakis, van Arem and van Wee 2017; Sperling 2017).
There is considerable uncertainty about these issues. Optimists predict that by 2030,
autonomous vehicles will be sufficiently reliable and affordable to replace most human driving,
providing independent mobility to non-drivers, reducing driver stress and tedium, and be a
panacea for congestion, accident and pollution problems (Johnston and Walker 2017; Keeney
2017; Kok, et al. 2017). However, there are good reasons to be skeptical of such claims.
Most optimistic predictions are based on experience with electronic innovations such as digital
cameras, smart phones and the Internet. Their analysis often overlooks significant obstacles
and costs. Although vehicles can now operate autonomously under certain conditions, many
technical problems must be solved before they can operate autonomously in all conditions –
including extreme weather, unpaved roads and during wireless service disruptions – and those
vehicles must be tested, approved for general commercial sale, affordable to most travellers,
and attractive to consumers. Motor vehicles last much longer and cost much more than
personal computers, cameras or telephones, so new technologies generally require many years
to penetrate vehicle fleets. A camera, telephone or Internet failure can be frustrating but is
seldom fatal; motor vehicles system failures can be frustrating and deadly to occupants and
other road users. Autonomous driving can induce additional vehicle travel which can increase
traffic problems. As a result, autonomous vehicles will probably take longer to develop and
provide smaller net benefits than optimists predict.
These factors have significant transport policy and planning implications (Papa and Ferreira
2018; Speck 2017). Vehicles rely on public infrastructure and impose external costs, and so
require more public planning and investment than most other technologies. For example,
autonomous vehicles can be programed based on user preferences (maximizing traffic speeds
and occupant safety) or community goals (limiting speeds and protecting other road users), and
many predicted autonomous vehicle benefits, including congestion and pollution reductions,
require dedicated lanes to allow platooning (numerous vehicles driving close together at
relatively high speeds). Policy makers must decide how to regulate and price autonomous
driving, and when potential benefits justify dedicating traffic lanes to their exclusive use.
This report explores these issues. It investigates, based on experience with previous vehicle
technologies, how quickly self-driving vehicles are likely to be developed and deployed,
critically evaluates their likely benefits and costs, and discusses their likely travel impacts and
their implications for planning decisions such as optimal road, parking and public transit supply.
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Autonomous Vehicle Implementation Predictions: Implications for Transport Planning
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Self-driving cars can be mobile bedrooms, playrooms or offices, allowing travellers to rest and work.
On the other hand, self-driving vehicles can introduce new stresses and discomforts. To
minimize cleaning and vandalism costs, self-driving taxis and buses will have “hardened”
interiors (vinyl seats and stainless steel surfaces), minimal accessories, and security cameras.
Demand response ridesharing (vehicles with flexible routes to pick up and drop off passengers
at or near their destinations) will reduce security (passengers may need to share space with
strangers), and reduce travel speed and reliability since each additional pick-up or drop-off will
impose a few minutes of delay to other passengers, particularly in sprawled areas with dead-
end streets. Grush (2016) suggests that travellers will experience “access anxiety,” if they fear
that their vehicle cannot reach a desired destination.
Autonomous vehicles can provide independent mobility for non-drivers, including people with
disabilities, adolescents, and others or who for any reason cannot or should not drive. This
directly benefits those travellers, reduces chauffeuring burdens on their family members and
friends, and improves their access to education and employment opportunities, increasing their
economic productivity. Some affluent non-drivers living in sprawled areas may purchase
personal autonomous vehicles, and urban non-drivers are likely to use autonomous taxies.
Optimistic predictions of autonomous vehicle benefits may cause some communities to reduce
support for public transit services which may reduce mobility options for non-drivers.
Dedicating highway lanes for autonomous vehicle platooning may reduce capacity for human-
operated traffic, making travellers in human-operated vehicles worse off.
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Self-driving vehicles will allow all vehicle occupants to rest, read, work and watch television (rather than
only listen to audio), but for safety sake they should wear seatbelts, and like any confined space, vehicle
interiors can become cluttered and dirty. Manufactures will probably produce vehicles with seats that turn
into beds and mobile offices (NYT 2017). For the foreseeable future autonomous vehicles are likely to be
and unable to operate in heavy rain and snow, on unpaved roads, or where GPS service or special maps
are unavailable, and they may be relatively slow and unreliable in mixed urban traffic.
Self-driving taxi and “micro-transit” (van) services will be cheaper than human-operated taxis, but offer
minimal service quality. To minimize cleaning and vandalism costs most surfaces will be stainless steel and
plastic, and passengers will be monitored by security cameras, yet passengers may still encounter previous
occupants’ garbage, stains and odors (Broussard 2018). There will be no drivers to help carry packages or
ensure passenger safety.
Like other public transportation, autonomous micro-transit will require passengers to share interior space
with strangers, who are mostly friendly and responsible but occasionally unpleasant and freightening.
Each additional passenger will add pickup and drop-off delays, particularly for passengers with special
needs, such as packages, children or disabilities, who need extra time, and in more sprawled areas with
dead-end streets where an additional stop can add several minutes. Because of these limitations,
autonomous taxi and micro-transit will most suited to local urban trips, and many travellers will choose to
own their own vehicle, or have a human operator, despite the extra cost.
Once the novelty wears off, autonomous vehicle travel will be considered utilitarian and tedious, a useful
but not particularly enjoyable or glamourous mobility option, more like an elevator than a spaceship.
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This suggests that Level 4 and 5 autonomous driving capabilities will probably increase vehicle
purchase prices by several thousands of dollars and require hundreds of dollars in additional
annual services and maintenance costs, adding a few thousand dollars per vehicle-year for the
foreseeable future (one to three decades). Experience with previous vehicle innovations, such
as automatic transmissions and airbags, discussed later in this report, suggests that
autonomous driving capability will initially be available only on higher priced models, and will
take one to three decades to be incorporated into middle- and lower-priced models.
Advocates argue that these additional costs will be offset by insurance and fuel cost savings,
but that seems unlikely. For example, if autonomous driving cuts insurance costs in half, the
$300-500 annual savings is just 10-20% of estimated additional costs. Additional equipment and
larger vehicles to serve as mobile offices and bedrooms are likely to increase rather than reduce
energy consumption. Electric vehicles have low fuel costs, in part because they currently pay no
road user fees comparable to motor vehicle fuel taxes; cost-recovery road-user fees would
increase electric vehicle operating costs 5-10¢ per vehicle-mile (FHWA 2015).
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Autonomous taxis will therefore require frequent inspections and cleaning. They will probably need a
quick cleaning that includes an inspection, garbage pick-up, vacuuming and surface wipe-downs
approximately every five to ten pick-ups, more comprehensive interior and exterior cleaning each day,
plus occasional repairs. Assuming $5-10 per cleaning this will add $0.50-1.00 per trip, or 5-10¢ per
vehicle-mile, plus travel time and costs for driving to cleaning stations.
This indicates that for the foreseeable future (one to three decades) autonomous vehicle costs
will probably average (total annual costs divided by annual mileage) $0.80-$1.20 per vehicle-
mile, which may eventually decline to $0.60-$1.00 per mile, which is somewhat more expensive
than human-operated vehicles’ $0.40-$0.60 per mile average costs (Stephens, et al. 2016).
Johnson and Walker (2017) predict that shared, electric, autonomous taxis cost will decline
from about 85¢ per vehicle-mile in 2018 to 35¢ per mile by 2035 (Exhibit 5), but they overlook
some previously-mentioned costs such as cleaning and roadway user fees, and so are probably
underestimates. Shared autonomous rides (self-driving public transit) will probably cost $0.20-
0.40 per passenger-mile, assuming that they average 3-6 passengers (Bösch, et al. 2017).
Some studies estimate lower costs (Keeney 2017). For example, Kok, et al. (2017) predict that
shared, electric autonomous vehicles operating costs will be less than 10¢ per mile, making
their use so inexpensive that it will often be funded through advertising, but such estimates
ignore significant costs such as vehicle maintenance and cleaning, business profits, empty
vehicle-travel, insurance (based on optimistic assumptions of autonomous vehicle safety), and
roadway costs (they assume that electric vehicles should continue to pay no road user fees),
and so are probably underestimates.
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Automobiles currently have about $3,600 in fixed expenses (financing, depreciation, insurance,
registration fees, residential parking and scheduled maintenance) and $2,400 in variable
expenses (fuel, oil, tire wear and paid parking), and are driven about 12,000 annual miles,
which averages about 50¢ per mile, of which about 20¢ per mile is operating expenses (AAA
2017; Litman 2009). Human-operated taxis generally cost $2.00-$3.00 per mile, ride-hailing
(also called ridesourcing and Transportation Network Companies, such as Uber and Lyft) about
$1.50-2.50 per mile, and conventional public transit 20-40¢ per mile.
The following figure compares these costs. Average costs are what travellers consider when
deciding whether to purchase a vehicle; operation costs are what vehicle owners consider when
deciding how to make a particular trip.
$2.50
Autonomous Vehicles (AV)
$2.00 Human Driven (HD)
Dollars Per Mile
$1.50
$1.00
$0.50
$0.00
HD car AV Public AV HD car AV AV Ride- HD
operation rideshare transit operation average Taxi average hailing Taxi
Autonomous vehicles (AVs) are predicted to cost less than human-driven taxis and ride-hailing services,
but more than human-driven personal vehicles (HVs) and public transit services.
This indicates that in the future personal autonomous vehicles will continue to cost more than
human-operated vehicles, but shared autonomous vehicles will be cheaper than human-
operated ride-hailing and taxi services. Since most vehicle costs are fixed, owners of personal
autonomous vehicles will have little financial incentive to use shared vehicles. However, the
availability of shared autonomous vehicles may encourage more households to reduce their
vehicle ownership, and so reduce their annual vehicle travel, as discussed later in this report.
Autonomous vehicles can provide large savings for commercial vehicles, such as freight trucks
and buses, where driver wages and benefits are a major portion of total costs, although many
delivery vehicles require an operator to unload goods.
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Reports by eight companies operating autonomous test vehicles in 2017 indicate that
disengagements (when human drivers override automated systems) exceeded one per 5,600
miles (Edelstein 2018). Common problems included failing to recognize a “no right turn on red
signal,” cars that planned to merge into traffic with insufficient space, failing to brake enough at
a stop, difficulty detecting vehicles approaching in opposite lanes, problems maintaining GPS
location signals, software crashes, inability to recognize construction cones, confusion over
unexpected behavior by other drivers, plus other hardware and software problems.
These new risks will probably cause crashes, so net safety impacts are likely to be smaller than
the 90% crash reductions that advocates claim. Sivak and Schoettle (2015a) conclude that
autonomous vehicles may be no safer per mile than an average driver, and may increase total
crashes when self- and human-driven vehicles mix. Groves and Kalra (2017) argue that
autonomous vehicle deployment is justified even if they only reduce crash rates 10%, but their
analysis indicates that net safety gains are significantly reduced if this technology increases
total vehicle travel. For example, if autonomous vehicles reduce per-mile crash rates 10% but
increase vehicle travel 12%, total crashes, including risks to other road users, will increase.
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Shared autonomous vehicles can reduce crashes by providing more affordable alternatives to
higher-risk drivers. Efforts to reduce higher-risk driving, such as graduated driver’s licenses,
special testing for senior drivers, and anti-impaired driver campaigns, can be more effective and
publicly acceptable if affected groups have convenient and affordable mobility options.
Many factors will affect these safety impacts, including how vehicles are programmed, and how
they affect total vehicle travel. For example, to maximize mobility autonomous vehicles can be
programmed to drive faster, take more risks in unpredictable situations, and platoon; to
maximize safety they can be programmed to drive slower, be more cautious, for example,
stopping for human instructions in any unexpected situation, and public policies, such as high
efficient road pricing, can encourage vehicle travel reductions.
External Cost
Advocates claim that autonomous driving will reduce external costs including traffic congestion,
energy consumption, pollution emissions, roadway and parking facility costs, although those
benefits are uncertain (Eddy and Falconer 2017; TRB 2019). To be more space and energy
efficient autonomous vehicles require dedicated lanes for platooning (Exhibit 7). This is only
feasible on grade separated highways.
Many proposed
autonomous vehicle
benefits, including
congestion and
emission reductions,
require platooning:
multiple electrically
connected vehicles
travelling close together
at relatively high
speeds, preferably lead
by a large truck. This
requires dedicated
highway lanes.
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Under many circumstances, autonomous operation may increase congestion, energy, pollution
and roadway costs. Optimists assume that autonomous vehicles will reduce pollution because
they will be all electric and mostly shared, but as discussed previously, many users will probably
choose personal autonomous vehicles, unless widely applied public policies, such as high fossil
fuel taxes and high occupancy vehicle lanes on congested roadway, favor electric and shared
vehicles. Self-driving technologies requires additional equipment, and vehicle manufactures are
likely to market seats that turn into beds and mobile offices, which can increase total energy
consumption and pollution emissions.
Autonomous vehicles may require higher roadway maintenance standards, such as clearer line
painting and special traffic signals (Lawson 2018). Autonomous operation can reduce parking
costs by allowing vehicles to park further from destinations, but most users will probably want
their vehicles available within five or ten minutes, and so must park within a mile or two. Their
impacts on overall congestion, energy, emissions and crash costs will depend on how self-
driving technologies affect total travel and urban development patterns. By proving a
comfortable alternative to public transit travel, they may increase total urban vehicle traffic. To
avoid paying for parking, autonomous vehicles may circle city blocks, increasing traffic
congestion. If they strictly follow traffic laws and maximize caution, such as speed limits and
optimal spacing between vehicles, they will reduce traffic speeds and increase delays. To
maximize comfort, so passengers can rest or work, users may program their vehicle to minimize
acceleration and deceleration rates, reducing traffic speeds (Le Vine, Zolfaghari and Polak
2015). If programmed for maximum caution in unexpected conditions, they may frequently
stop to wait for human instructions.
Over the long term, autonomous vehicles may stimulate sprawled, automobile-dependent
development patterns, increasing sprawl-related costs and total vehicle travel, and by reducing
public transit demand they can reduce transit system revenues and efficiencies.
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Reduced drivers’ stress and increased Increased vehicle costs. Requires additional vehicle
productivity. Motorists can rest, play and work equipment, services and fees.
while travelling.
Additional user risks. Additional crashes caused by system
Mobility for non-drivers. More independent failures, platooning, higher traffic speeds, additional risk-
mobility for non-drivers can reduce motorists’ taking, and increased total vehicle travel.
chauffeuring burdens and transit subsidy needs.
Reduced security and privacy. May be vulnerable to
Reduced paid driver costs. Reduces costs for taxis information abuse (hacking), and features such as location
and commercial transport drivers. tracking and data sharing may reduce privacy.
Reduced energy consumption and pollution. May Increased infrastructure costs. May require higher roadway
increase fuel efficiency and reduce emissions. design and maintenance standards.
Supports vehicle sharing. Could facilitate Reduced support for other solutions. Optimistic predictions
carsharing and ridesharing, reducing total vehicle of autonomous driving may discourage other transport
ownership and travel, and associated costs. improvements and management strategies.
Autonomous vehicles can provide various benefits and costs, including external impacts on other people.
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Operating a vehicle on public roads is complex due to the frequency of interactions with other,
often-unpredictable objects including vehicles, pedestrians, cyclists, animals and potholes.
Because of these interactions, autonomous vehicles will require orders of magnitude more
complex software then aircraft (Exhibit 9). Producing such software is challenging and costly,
and ensuring that it never fails is virtually impossible. There will almost certainly be system
failures, including some that cause severe accidents.
Consider one challenge. For safety sake motorists are advised to drive defensively, which means
anticipating potential risks such as wild animals and playful children. To do this, autonomous
vehicles will need a database that categorizes, for example, fire hydrants as low-risk, pets on
leashes as medium risk, and wild animals, such as kangaroos, as high risk. In addition, children
sometimes dress in animal costumes, and adolescents in zombie variations. Most drivers can
understand such risks. If I warn, "Watch out for teenagers in zombie kangaroo costumes," you
could probably understand the threat since you too were once a playful youth, but a computer
would be flummoxed: such an unusual situation is unlikely be in a standard database, so the
vehicle would either miss-categorize the risk, perhaps treating costumed fun-seekers as injured
crash victims or a riotous mob, or stop and wait for human instructions. These systems can self-
learn, and so could eventually recognize new costumes and behaviors, but this will require new
software coding that may interact unpredictably with other instructions. This is not to suggest
that autonomous driving is impossible or inherently harmful, it simply illustrates one of many
problems they face: new risks leading to solutions that further increase system complexity and
therefore potential failures.
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Even after Level 5 technology is fully functional and reliable, additional time will be required for
independent testing and regulatory approval. Because vehicles can impose significant external
costs, including accident risks and delays to other road users, vehicle technologies require
higher testing and regulation standards than most other technological innovations such as
personal computers and mobile phones. Under optimistic conditions testing and approval will
only require a few years, but the technology may prove unreliable and dangerous, for example,
if it causes high-profile crashes, which could require several more years (Bhuiyan 2017). It is
likely that different jurisdictions will impose different testing, approval and regulations,
resulting in varying rates of deployment.
Most experts acknowledge that significant progress is needed before Level 5 automation is
reliable, tested and approved (Mervis 2017). For example, Michigan Mobility Transformation
Center director Huei Peng said that, “it may be decades before a vehicle can drive itself safely at
any speed on any road in any weather” (Truett 2016). Similarly, Toyota Research Institute CEO,
Gill Pratt stated that autonomous driving, “is a wonderful goal but none of us in the automobile
or IT industries are close to achieving true Level 5 autonomy” (Ackerman 2017). Uber self-
driving vehicle lab director Raquel Urtasun said that, "Having self-driving cars at a smaller scale,
on a small set of roads, we are fairly close. To see at an Uber scale we are far…Nobody has a
solution to self-driving cars that is reliable and safe enough to work everywhere" (Marowits
2017).
Artificial intelligence expert Yoshua Bengio said that, "I think people underestimate how much
basic science still needs to be done before these cars or such systems will be able to anticipate
the kinds of unusual, dangerous situations that can happen on the road" (Marowits 2017).
Similarly, Heilbronn University artificial intelligence expert Professor Nicolaj Stache said, “The
vision that drives us is to replicate the human car driver – only without replicating human
mistakes. In other words, we are aiming to substitute the human brain through artificial
intelligence. That’s still a long way away, but we are working on it” (Ebert 2016).
In contrast to these cautious predictions by experts, most optimistic predictions are made by
people with financial interests in autonomous vehicle industries, based on experience with
other types of technology. For example, the widely-cited report, “Rethinking Transportation
2020-2030: The Disruption of Transportation and the Collapse of the Internal-Combustion
Vehicle and Oil Industries” was written by ReThink, “an independent think tank that analyzes
and forecasts the speed and scale of technology-driven disruption and its implications across
society.” Mobility-As-A-Service: Why Self-Driving Cars Could Change Everything, was published
by ARK Investment Management and written by an analyst who “covers autonomous cars,
additive manufacturing, infrastructure development, and innovative materials,” with little
apparent experience with transportation innovation. Automotive Revolution – Perspective
Towards 2030: How the Convergence of Disruptive Technology-Driven Trends Could Transform
the Auto Industry, was published by the McKinsey Corporation, a business management firm.
To their credit, such predictions are often qualified – autonomous vehicles “could” or “might”
change everything – but their conclusions are repeated with certitude.
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Such reports are primarily oriented toward investors and so focus on the autonomous vehicle
sales potential, but policy makers and planners are interested in their fleet penetration and
travel impacts. Motor vehicles are durable and expensive; consumers seldom purchase new
vehicles simply to obtain a new technology, so innovations generally take decades to fully
penetrate vehicle markets. As a result, even if autonomous driving technologies penetrate new
vehicle markets in the 2020s, it will be the 2040s or 2050s before most vehicles are capable of
autonomous driving. Optimists argue that benefits will be large enough to justify premature
scrapping of most vehicle that lack autonomous driving capability, but that seems unlikely
under realistic assumptions of their benefits and costs.
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Exhibit 11 summarizes their deployment. Most required decades from initial commercial
availability to market saturation, and some never became universal. Lavasani and Jin (2016)
conclude that, because autonomous vehicle technologies are more revolutionary than those in
Exhibit 11, they will probably have slower initial market acceptance and penetration.
The first affordable car, Ford’s Model T, began production in 1908, leading to mass automobile
ownership, but the transportation system continued to be mixed for several decades, with most
travellers relying on walking, bicycling and public transit in addition to cars. Only after the 1980s
did motorization approach saturation, with most potential drivers having a personal vehicle.
0.8
250
Vehicles automobile production
Vehicles Per Capita
0.7
Vehicles Per Capita started in 1908, during
(Millions)
New vehicles are becoming much more durable, which reduces fleet turnover. As a result, new
vehicle technologies normally require three to five decades to penetrate 90% of vehicle fleets.
Deployment may be faster in developing countries where fleets are expanding, and in areas
with strict vehicle inspection requirements, such as Japan’s shaken system. Annual mileage
tends to decline with vehicle age: vehicles average approximately 15,000 miles their first year,
10,000 miles their 10th year, and 5,000 miles their 15th year, so vehicles over ten years
represent about 50% of vehicle fleets but only 20% of mileage (ORNL 2012, Table 3.8).
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Saturation
80% Maturation
Potential Market
Market diffusion
60%
Expansion
40% Product
improvement
Autonomous vehicle technologies are currently in development, testing and approval stages.
There are several stages and therefore many years, before they are widely commercially
available, become reliable and affordable, and therefore start to saturate the vehicle fleet.
Deployment Predictions
Exhibit 13 uses the previous analysis to predict autonomous vehicle sales, fleet and travel
market penetration, assuming that Level 5 vehicles become commercially available in the 2020s
but are initially expensive and limited in performance. Due to these limitations, during their first
decade only a minority of new vehicle are likely to be fully autonomous, with market shares
increasing as their prices decline, performance improves, and consumers gain confidence. In
the 2040s approximately half of vehicles sold and 40% of vehicle travel could be autonomous.
Without mandates, market saturation will probably take several decades, and a portion of
motorists may continue to choose human operated vehicles due to costs and preferences.
These results are approximately consistent with other estimates by researchers (Cathers 2014;
Grush 2016; Lavasani and Jin 2016; Simonite 2016), although slower than the optimistic
predictions by some industry experts (Kok, et al. 2017; McKinsey 2016).
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Exhibit 14 Autonomous Vehicle Sales, Fleet and Travel Projections (Based on Exhibit 13)
100%
Sales - Optimistic
Sales - Pessimistic
80% Travel - Optimistic
Travel - Pessimistic
Fleet - Optimistic
60%
Fleet - Pessimistic
40%
20%
0%
2020 2030 2040 2050 2060 2070
If autonomous vehicles follow previous vehicle technologies, it will take one to three decades for them to
dominate new vehicle sales, and one or two more decades to dominate vehicle travel, and even at
saturation a portion of vehicle travel may continue to be human operated, indicated by dashed lines.
Because bus and truck drivers earn relatively high wages, they are likely to become automated
most quickly, particularly for long-haul trips. However, professional drivers provide various
services – passenger security and assistance, systems monitoring and minor repairs – that will
be lost with fully automated vehicles.
Significantly faster implementation will require more rapid development, deployment and fleet
turnover than previous vehicle technologies. For example, for most vehicle travel to be
autonomous by 2035, almost all vehicles produced after 2025 would need to be autonomous,
and new vehicle purchase rates would need to triple so fleet turnover that normally takes three
decades can occur in one. This would require significant vehicle spending increases, at least in
the short-run, and scraping many otherwise functional vehicles that lack self-driving capability.
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Emerging shared mobility services, such as carsharing and ride-hailing are reducing vehicle
ownership and parking demand in some situations (DeLuca 2018), and could accelerate
autonomous vehicle travel, but there are significant obstacles. As previously described, outside
dense urban areas autonomous taxis and micro-transit are relatively inconvenient and
inefficient, and so are unlikely to replace most private vehicle travel in suburban and rural areas
where most Americans live.
Autonomous vehicle implementation could be slower and less complete than optimistic
predictions. Technical challenges may prevent reliable and affordable autonomous vehicles
from be commercially available until the 2030s or 2040s. Their costs may be higher and benefits
smaller than expected. Consumer acceptance may be reduced by fears, privacy concerns, or
preferences, resulting in a significant portion of vehicle travel remaining human-driven even
after market saturation, indicated by dashed lines in Exhibit 15.
Travel Impacts
Many costs and benefits will depend on how autonomous vehicles affect total vehicle travel.
Exhibit 15 summarizes ways that autonomous vehicles may increase or reduce vehicle travel.
Miller and Kang (2019) offer guidance for modelling these effects.
Autonomous vehicles are likely to increase vehicle travel by non-drivers, such as people with
disabilities and adolescents. They typically represent 10-30% of community residents but tend
to have relatively low vehicle travel demands, and are now often chauffeured by family
members or friends, so self-driving vehicles may cause little net increase in their vehicle travel.
Autonomous driving increases driver convenience and productivity, which can stimulate vehicle
travel, for example, encouraging users to choose longer commute and errand trips, and more
sprawled locations (Fleming and Singer 2019; Stephens, et al. 2016). Autonomous vehicles can
also stimulate empty vehicle travel, for example, when picking up or dropping off passengers,
or when waiting to be summoned; it will often be cheaper for a car to drive around than to pay
parking fees. With current policies these factors are likely to increase total vehicle travel.
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Fleming and Singer (2019) surveyed 1,000 U.S. adults concerning their preferences and
responses to autonomous vehicles. Although many respondents indicated that autonomous
driving technology would not change their annual vehicle travel, those that do anticipate
changes are far more likely to travel more rather than less. Sivak and Schoettle (2015) estimate
that accommodating non-drivers’ latent travel demands could increase total vehicle up to 11%.
Trommer, et al. (2016) predict that autonomous vehicles will increase total vehicle travel 3-9%
by 2035. Keeney (2017) predicts a three-fold traffic increase but provides no supporting
evidence.
Taiebat, Stolper and Xu (2019) developed a microeconomic model to estimate vehicle travel
elasticities with respect to fuel and time costs. Their central estimate of the combined elasticity
of VMT demand is −0.4. They find that most households are more sensitive to time than to fuel
costs, and that wealthier households have more elastic demand. They use these estimates to
predict the VMT and energy use impacts of various connected and autonomous vehicle
adoption scenarios, and forecast a 2–47% increase in travel demand for an average household.
This indicates that a net rise in energy use is possible, especially in higher income groups.
Affordable self-driving taxis and micro-transit may cause households to reduce vehicle
ownership and rely more on shared vehicles and trips. This can significantly affect total vehicle
travel because owned and shared vehicles have very different cost profiles: owned vehicles
have high fixed (typically $4,000 annual) and low variable costs (typically 20¢ per mile), which
gives owners an incentive to maximize their driving in order to “get their money’s worth,” while
shared vehicles, such as carsharing and taxis, have minimal fixed costs and high variable costs
(typically $0.50-2.50 per mile), giving users incentives to minimize vehicle travel. As a result,
households tend to significantly reduce their vehicle travel, typically by 25-75%, when they shift
from owning to sharing vehicles (Lovejoy, Handy and Boarnet 2013).
On the other hand, taxi services require significant amounts of deadheading (vehicle travel with
no passenger to relocate vehicles). Analysis by Henao and Marshall (2018) estimates that at
least 41% of current ride-hailing vehicle travel is deadheading, resulting in a 0.8 average
passenger occupancy rate, accounting for deadheading. As autonomous taxi services expand,
deadheading distances may decline, but cannot disappear, and will probably be significant in
suburban and rural areas where demand is dispersed.
Advocates predict that convenient and affordable autonomous taxis will quickly displace private
vehicle (ITF 2014; Keeney 2017). Kok, et al (2017), predict that, “By 2030, within 10 years of
regulatory approval of fully autonomous vehicles, 95% of all U.S. passenger miles will be served
by transport-as-a-service (TaaS) providers who will own and operate fleets of autonomous
electric vehicles providing passengers with higher levels of service, faster rides and vastly
increased safety at a cost up to 10 times cheaper than today’s individually owned (IO) vehicles.”
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However, these predictions are based on optimistic assumptions of shared vehicle convenience
and affordability. Many travellers will have good reasons to own personal vehicles:
Convenience. Motorists often keep items in their vehicles, including car seats, tools, sports
equipment and emergency supplies.
Speed and Reliability. Under optimal conditions taxis can arrive in less than five minutes of a
summons, but often take much longer, particularly during busy periods, for special vehicle types
(such as a van to carry multiple passengers or a wheelchair), and in suburban and rural areas.
Costs. Vehicle sharing is generally cost effective for motorists who drive less than about 6,000
annual miles. People who live in suburban and rural areas, who usually commute by car, or who
for other reasons drive high annual miles will probably choose to own a personal vehicle.
Status. Many people take pride in their vehicles and their driving ability, and so may prefer to
own private vehicles, and have the option of driving.
Exhibit 16 summarizes the travellers and trips most suitable for personal or shared vehicle
travel. In many cases, shared autonomous vehicles will allow households to reduce but not
eliminate personal vehicles, for example, owning one rather than two vehicles.
These scenarios illustrate how autonomous vehicles could impact various users’ travel:
Jake is an affluent man with degenerating vision. In 2026 he gives up driving and purchases an
autonomous vehicle. Impacts: An autonomous vehicle allows Jake to maintain independent mobility,
which increases his vehicle ownership and travel, residential parking demand, and external costs
(congestion, roadway costs, parking subsidies, and pollution emissions).
Bonnie lives and works in a suburb. She can bike to most destinations but occasionally needs a car. In
a city she could rely on taxis, but in suburbs they are slow and expensive. Starting in 2030 a local
company started offering convenient and affordable autonomous taxi services. Impacts:
Autonomous vehicles allow Bonnie to rely on bicycling and shared vehicles rather than a personal
car, which reduces her total vehicle travel, residential parking demand, and external costs.
Melisa and Johnny have two children. Melisa works at a downtown office. After their second child
was born in 2035, they shopped for a larger home. With conventional cars they would need a house
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within a 30-minute commute of the city center, but the availability of new autonomous vehicles let
them consider more distant homes with commutes up to 60-minutes, during which Melisa could rest
and work. Impacts: Affordable new autonomous vehicles allow Melisa and Johnny to choose an
exurban home which increased their total vehicle travel and associated costs.
Garry is a responsible driver when sober but dangerous when drunk. By 2040 he had accumulated
several impaired citations and at fault accidents. With conventional cars Garry would continue
driving impaired until he lost his drivers’ license or caused a severe crash, but affordable used self-
driving vehicles allow lower-income motorists like Garry to avoid such problems. Impacts: Affordable
used autonomous vehicles allow Garry to avoid impaired driving, accidents and revoked driving
privileges, which reduces crash risks but increases his vehicle ownership and travel, and external
costs compared with what would otherwise occur.
Exhibit 17 summarizes the resulting impacts of these various scenarios. In most of these cases
autonomous vehicles increase total vehicle mileage.
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These impacts will vary by travel demands, that is, trip types, as summarized in Exhibit 18.
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A detailed review of these effects, Travel Effects and Associated Greenhouse Gas Emissions of
Automated Vehicles (Rodier 2018b), identified various ways that autonomous vehicle
technologies can affect total vehicle travel, as summarized in Exhibit 19.
This suggests that with current policies, autonomous vehicles are likely to significantly increase
total vehicle miles travelled (VMT) and pollution emissions, probably by 10-30%, and more on
some travel corridors. This is likely to increase urban traffic congestion and sprawled
development unless road use is more efficiently priced (Miller and Kang 2019). Electrifying the
vehicle fleet could counter emission growth, but unless electric vehicle operation is efficiently
priced this will reduce vehicle operating costs which will further increase vehicle travel and
traffic impacts. Shared autonomous taxis could significantly reduce vehicle travel and
emissions, but only if policies favor their use over personal cars.
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There are also potential transportation planning conflicts. By increasing vehicle travel demand
and traffic speeds, and displacing public transit, autonomous vehicles could exacerbate traffic
congestion, sprawl-related costs, and mobility inequity. For example, if parking is priced but
roads are not, autonomous vehicles may cruise urban streets to avoid paying for parking,
exacerbating congestion and pollution problems. Some advocates claim that autonomous
vehicles eliminate the need for conventional public transit services, but high capacity transit will
still be needed on major travel corridors, and autonomous technologies can support transit by
reducing operating costs and improving access to stops and stations (ITF 2014; TRB 2017).
Shared vehicles reduce parking demand but increase the need for convenient pick-up and drop-
off options, which requires better curb management to minimize conflicts and risks (OECD/ITF
2018). Various public interest organizations have developed guidelines for optimizing the
benefits of emerging mobility technologies and services (Fulton, Mason and Meroux 2017;
Kaohsiung EcoMobility Festival 2017). The box below summarizes one example.
The following policies can help maximize benefits (Schlossberg, et al. 2018; TRB 2017):
Test and regulate new technologies for safety and efficiency.
Require autonomous vehicles to be programed based on ethical and community goals.
Efficiently regulate and price roads and curb space to minimize conflicts, congestion and risks.
Favor shared and higher-occupant vehicles over lower-occupant vehicles on public roads.
Support high capacity public transit on major travel corridors.
Reduce parking requirements to take advantage of shared vehicles.
Efficiently price development to prevent inefficient sprawl.
Use vehicle traffic reductions to redesign streets and improve urban livability.
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Planning Implications
Autonomous vehicles raise many policy and planning issues (Taeihagh and Lim 2018). Their
development is just one of many trends that will affect future transport demands and planning
needs, as illustrated in Exhibit 20. Changes in demographics, consumer preferences, prices,
information technologies, mobility options, and other planning innovations will also influence
how people want to travel. These may have greater impacts than autonomous vehicles for the
foreseeable future.
Autonomous vehicles are one of many factors affecting future transport demands.
Some autonomous vehicle benefits, such as reduced driver stress, can occur with Level 2-3
automation, but other benefits, including independent mobility for non-drivers and increased
occupant safety require Level 4-5, and most external benefits (reduced traffic congestion, crash
risk, pollution, and infrastructure costs imposed on others) can only occur when autonomous
vehicles are common, and some require that highway lanes be dedicated to autonomous
vehicle platoons. The following matrix summarized the benefits provided by various AV levels.
Dedicated AV lanes ?
Autonomous vehicles benefit users by improving their mobility options, reducing stress, saving money
and increasing safety. External benefits (reduced crash risk, congestion delay, emissions and parking
costs imposed on others) primarily result from shared vehicles and rides that reduce total vehicle travel.
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Exhibit 22 Key Autonomous Vehicle Planning Issues (based on Papa and Ferreira 2018)
Issues Optimistic Outcome Pessimistic Outcome
Sharing Policies encourage autonomous vehicle sharing. AVs are promoted as private luxury goods.
Social Policies designed to maximize AV affordability and AVs are only affordable and available by privileged
exclusion accessibility ensure that they are widely available. (affluent) users.
Environmental AV policies give little consideration of to
sustainability AV policies support environmental goals. environmental concerns.
Operated AV operating systems are programmed based on AV operating systems are programmed based on
cooperation cooperative, altruistic and ethical principles. competitive, aggressive and defensive principles.
Public Public policies support public transport, providing Public policies focus too much on AVs and fail to
transport funding and favoring shared vehicles in traffic. support public transport.
Intermodal AV policies and programming respect human life. Public policies and programming favor AV
traffic They minimize crash risks and protect vulnerable occupants over other road users, and so will favor
regulations road users (e.g., through lower speeds). affluent over more vulnerable groups.
Network Data networks are designed make more Data networks are designed to maximize profits so
information sustainable and efficient decisions regarding route critical information is only available to affluent
systems choice and parking at a fleet level. users.
Sensitive data Personal data are carefully managed based on Data are used for commercial purposes. AVs collect
management general public interest. an abundance of sensitive private information.
Policies facilitate the conversion of parking Parking policies remain as they are, so parking
facilities into recreational, green, and building continues to consume valuable land that could be
Parking areas, or into active transport infrastructure. used for more sustainable or social purposes.
Curb access is efficiently managed to serve shared Curb space is congested and dangerous, and other
Curb Access vehicle passengers along with other uses. others (pedestrian and bicyclists) are harmed.
Land use Urban areas become more attractive places to Urban land is managed to accommodate AV travel,
policies live. Transport policies promote quality of life. to the detriment of other social groups.
Transport Transport networks are designed to be safe for all. Transport networks are restructured to
network Urban transport planning favors sustainable accommodate AVs’ needs. Other modes see no
design transport modes. comparable protection or investment.
Autonomous vehicles raise many policy and planning issues.
The Pedestrian and Bicycle Information Center identifies ten special risks that autonomous
vehicles can impose on pedestrians and cyclists, and how these can be minimized (PBIC 2017).
Appleyard and Riggs (2018) identify planning principles to ensure that autonomous vehicles
support community livability goals by improving driving behavior (slower speeds, and enhanced
ability to yield and stop), improving walking and bicycling conditions, and reducing parking
supply, but these will only occur if supported by suitable public policies.
There is much that policy makers and planners can do to maximize the benefits and minimize
the costs of autonomous vehicle implementation (Henaghan 2018; Largo, et al. 2018). As the
technology develops, transportation professionals should help establish performance
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standards, analyze impacts, and support policies to minimize their costs and maximize their
benefits. Exhibit 23 identifies various planning implications of various planning needs and
requirements for autonomous vehicle development.
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This timeline summarizes how autonomous vehicles are likely to impact transport planning.
Phoenix was chosen because it has mild climate, wide streets and relatively few pedestrians. The vehicles
are relatively slow. Further development and testing is required before the technology can expand to
cities with extreme weather or congestion, and its expansion will depend on the service’s profitability,
which will require high consumer confidence and satisfaction, and cost reductions. As a result, it will
probably take several years before commercial autonomous taxi services are widely available.
Taxis primarily serve local urban trips when travellers lack a personal vehicle, which represents a minor
portion of total travel. To significantly reduce vehicle travel and associated costs, autonomous taxis must
become inexpensive, ubiquitous and integrated with other mobility options so households can reduce
their vehicle ownership and rely on shared vehicle. This can be accelerated by public policies that
discourage private vehicle ownership and encourage sharing, such as reduced parking supply, High
Occupancy Vehicle Lanes, and convenient drop off/pick up areas.
This is consistent with predictions that during the 2020s, autonomous vehicles will have limited availability
and performance. If the technology improves and become affordable and reliable, so self-driving taxi
services to become profitable, they can expand to serve more areas and trip types. However, until most
households shift from owning vehicles to relying on shared mobility services, and until a greater share of
households live in compact and multimodal neighborhoods, the new generation of autonomous taxis will
affect only a small portion of total travel and provide modest community benefits.
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Conclusions
Recent announcements that autonomous vehicles will soon be commercially available raise
hopes that these technologies will quickly solve many transportation problems. Some
advocates predict that by 2030 such vehicles will be sufficiently reliable and affordable to
displace most human-operated vehicles, providing many benefits to users and society overall.
However, there are good reasons to be skeptical.
Most optimistic predictions are speculative and exaggerated, often made by people with
financial interests in the industry, based on experience with other disruptive technologies such
as personal computers, digital cameras and smart phones. Advocates often ignore significant
costs and risks, rebound effects (increased vehicle travel caused by faster travel or reduced
operating costs), and potential harms to non-users. Benefits are often double-counted, for
example, by summing increased safety, traffic speeds and facility savings, although these often
involve trade-offs. Vehicles typically last an order of magnitude longer, cost two orders of
magnitude more, impose greater external costs, and rely more on public infrastructure than
other technologies. As a result, vehicle innovations tend to take longer and involve more
regulation than most other new technologies.
These performance limitations and additional costs are likely to limit sales. Most motorists will
be reluctant to pay thousands of dollars extra for an autonomous vehicle that will sometimes
respond, “That is not a feasible destination,” due to poor weather conditions or unmapped
roads. If they follow previous vehicle technology deployment patterns, autonomous vehicles
will initially be costly and imperfect. During the 2020s and perhaps the 2030s, autonomous
vehicles will be expensive novelties, unable to operate in conditions such as heavy rain and
snow, unpaved roads, where GPS services and special maps are unavailable, and in mixed urban
traffic. They will be purchased by affluent non-drivers and people who frequently drive long
distance, but many travellers will not consider the extra costs justified. It will probably be the
late 2030s or 2040s before they become affordable to middle-income households, and later
before they are affordable to lower-income motorists.
During the 2020 and 2030s, self-driving taxi and “micro-transit” (van) services may become
available in many urban areas. They should be cheaper than human-operated taxis, costing
about $0.60-1.00 per mile for a self-driving taxi and 30-60¢ per mile for micro-transit, but offer
low service quality: to minimize cleaning and repair costs their interiors will be metal and
plastic, and occupants will be monitored by cameras, yet passengers will probably still find
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previous occupants’ garbage, stains and odors. No drivers will be available to assist passengers
and provide security. Additional passengers will add pickup and drop-off delays, particularly in
lower-density areas. Because of these limitations, autonomous taxi and micro-transit will only
be suitable for a portion of travel, mainly local urban trips. Once the novelty wears off,
autonomous taxi use will seem as tedious as commercial airline travel.
Exhibit 25 illustrates a prediction of market penetration and benefits. This indicates that it will
be at least 2040 before half of new vehicles are autonomous, 2050 before half of the vehicle
fleet is autonomous, and possibly longer due to technical challenges or consumer preferences.
Based on previous vehicle technology deployment patterns, this analysis predicts that it will be at least
2040 before half of all new vehicles are autonomous, 2050 before half of the vehicle fleet is autonomous,
and possibly longer due to technical challenges or consumer preferences. Significantly faster deployment
will require scraping many otherwise functional vehicles because they lack self-driving capability. Some
user benefits can occur when autonomous vehicles are relatively costly and rare, but many benefits, such
as independent mobility for moderate-income non-drivers, can only be significant if they become very
reliable and affordable, and some benefits, such as reduced traffic congestion and emissions, require
dedicated lanes to allow autonomous vehicle platooning.
A critical question is whether autonomous vehicles increase or reduce total vehicle travel and
associated external costs. It could go either way, depending on public policies. By allowing
vehicle travel by non-drivers, increasing travel convenience and comfort, and allowing vehicles
to drive in circles rather than pay for a parking space, they could increase total vehicle mileage
and traffic problems. Alternatively, they may also facilitate vehicle sharing, which allows
households to reduce vehicle ownership and therefore total driving.
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Many motorists may prefer to own personal vehicles for prestige and convenience sake, or use
a combination of modes (walking, cycling, conventional public transit and taxi). As a result,
shared autonomous vehicles are likely to reduce vehicle travel mostly in compact urban areas,
and increase travel in suburban and rural areas. Since most North Americans live in suburban
areas, total vehicle travel will probably increase unless discouraged by public policies.
Another critical issue is the degree potential benefits can be achieved when only a portion of
vehicle travel is autonomous. Some benefits, such as improved mobility for affluent non-
drivers, may occur when autonomous vehicles are uncommon and costly, but many potential
benefits, such as reduced congestion and emission rates, reduced traffic signals and lane
widths, require that most or all vehicles on a road operate autonomously.
A key public policy issue is the degree that this technology may harm people who do not use
such vehicles, for example, increased traffic volumes and speeds that degrade walking and
cycling conditions, reduced investments in public transit, or requiring restrictions on human-
operated vehicles. Platooning benefits require dedicated autonomous vehicle lanes. These
issues will probably generate considerable debate over their merit and fairness.
To minimize problems and maximize benefits many experts recommend that public policies
protect pedestrians and bicyclists from new conflicts and risks, encourage shared and electric
autonomous vehicles, and limit total vehicle traffic particularly in denser urban areas. This can
be done with High Occupancy Vehicle (HOV) priority lanes which favors shared over single-
occupancy vehicles on congested roads, increased fossil fuel taxes, efficient road pricing,
convenient passenger pick-up and drop-off facilities, reduced parking requirements and
efficient parking pricing. Experts also recommend various technical requirements and
regulations to ensure that autonomous vehicles are programed to minimize risks and delay to
other people, particularly pedestrians, bicyclists and public transit users.
Autonomous vehicle implementation is just one of many trends likely to affect future transport
demands and costs, and therefore planning decisions, and not necessarily the most important.
Its ultimate impacts depend on how it interacts with other trends, such as shifts from personal
to shared vehicles. It is probably not a “game changer” during most of our professional lives,
and is only a “paradigm shift” to the degree that this technology supports shifts to more
efficient and multimodal transport planning.
Transportation professionals (planners, engineers and policy analysts) have important roles to
play in autonomous vehicle development and deployment. We can help define the
performance standards they must meet to legally operate on public roads. We should evaluate
the risks and opportunities they present, and develop policies to ensure that their deployment
supports strategic community goals including congestion reduction, public safety and health,
and improved opportunity for disadvantaged people. Once they become more common they
may affect road, parking and public transit planning decisions.
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Autonomous Vehicle Implementation Predictions: Implications for Transport Planning
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