Driving Without Humans

Abstract

Self-driving cars may take over our urban city streets in the years to come, and this could lead to significant changes. This paper focuses on the economic impact of fully autonomous vehicles on urban cities and reviews the existing literature on the topic. The results indicate that there is no consensus in the literature on the potential impact of fully autonomous vehicles on urban cities. The outcomes are highly dependent on the assumptions made about consumer preferences, business model that is going to be implemented, and potential infrastructure costs that emerge with the introduction of fully autonomous vehicles (AVs). I also analyze the potential impact of AVs on consumers under different scenarios.