Economic Effects of Autonomous Vehicles

Over the past century, the self-driving industry has grown exponentially. For many global car industries, their role in the self-driving industry is not a matter of selling more cars, but a matter of their company's survival. As a result, they have unrelentingly competed to be at the forefront of driverless car development. Autonomous vehicles are the future. However, the introduction of autonomous vehicles into our modern society will present many changes to our current economy.

First, the introduction of autonomous vehicles will result in significant cost savings in the health and insurance sectors. According to the NHTSA, the injuries in vehicle accidents result in $57.6 billion of lost workplace productivity, and $594 billion due to loss of life and decreased quality of life due to injuries. Reducing these accidents would prove to be a massive boost to the economy. Furthermore, the introduction of a self-driving taxi service will allow people to save $5000-10,000 a year on transportation fees. Not to mention the fact that it will drop the cost of taxis and ride-sharing in half. More efficient travel will also result in fuel savings. Furthermore, the technology would allow traffic to flow more smoothly and result in less traffic congestion. Shortened journey and commute times will have a positive effect on our economy.


However, the introduction of a self-driving taxi service will result in the massive displacement of drivers in the transportation sector. This could potentially have a negative effect on unemployment rates and thus, the economy. In addition, the influx of autonomous vehicles may require changes in smart infrastructure - which comes at a significant public cost.

It is expected that most cars in the United States will be driverless within the next half-century. At this point, it is inevitable that autonomous vehicles will eventually dominate not just American society, but become a global industry.