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Automated Vehicle Technology Offers Several Benefits

• Without driver error, fewer vehicle crashes will result.
• The mobility of the young, the elderly, and the disabled will be increased.
• Traffic flow could be more efficient and congestion decreased.
• Vehicle occupants could spend travel time engaged in other activities, so the costs of travel time and congestion are reduced.
• Fuel efficiency can be increased and alternative energy sources facilitated.
• Because such vehicles won't need proximate urban parking, space used for parking could be repurposed.

There Are Possible Drawbacks

• Because the technology would decrease the cost of driving, congestion might increase, rather than decrease.
• Occupations and economies based on public transit, crash repair, and automobile insurance might suffer as the technology makes certain aspects of these occupations obsolete.

Policy Implications Include Liability and Regulation Issues

• Manufacturer liability is likely to increase while personal liability is likely to decrease. If a vehicle and a human share driving responsibility, the insurance issues could become more complicated. A variety of solutions exist if this poses a problem.
• Inconsistent state regulation poses a risk — if 50 states have 50 different regulations, it would be difficult for manufacturers to match them all; likewise, vehicle owners might not be able to travel outside their state of residence.
• Because many of the benefits of autonomous vehicle technology accrue to those other than the purchaser, subsidies or taxes may be necessary in order to maximize social welfare by equalizing the public and private costs and benefits.