Negative spillovers of new technologies: The unequal burden of congestion created by AVs

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See all articles by Leslie A. Martin

Leslie A. Martin

University of Melbourne - Department of Economics

Zan Fairweather

affiliation not provided to SSRN

Date Written: July 26, 2020

Abstract

Autonomous vehicle (AV) technologies lower the private cost of driving, leading to induced demand for road use at peak times. Because adoption is likely to skew towards higher-income commuters, we show that the congestion externalities exacerbated by adoption are likely to be experienced disproportionately by lower-income drivers. Unless proactive policies like congestion pricing or improved access to public transit or ride-share are simultaneously implemented, autonomous vehicles are likely to make lower-income commuters actively worse off in congested cities where many higher-income commuters currently take public transit.

Keywords: automation, congestion, distributional impact, externalities, new technologies, transportation

JEL Classification: D62, Q55, R41

Suggested Citation

Martin, Leslie A. and Fairweather, Zan, Negative spillovers of new technologies: The unequal burden of congestion created by AVs (July 26, 2020). Available at SSRN: https://ssrn.com/abstract=

Leslie A. Martin (Contact Author)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

HOME PAGE: http://lesliemartin.org

Zan Fairweather

affiliation not provided to SSRN

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