Willingness to pay for driverless cars

Driverless cars represent a significant opportunity for the transport sector and society. Driverless cars have the potential to improve safety, reduce travel times and improve mobility. Attitudes toward driverless cars are increasingly important as governments around the world begin to develop their policies for the implementation of driverless cars. An area that has not been sufficiently addressed in the literature concerns the demand for driverless cars. The aim of this paper was to provide an explorative assessment of the probability of driverless car usage and the likely willingness to pay. An online survey of 265 respondents was undertaken to measure attitudes to driverless cars. We found that the probability of driverless car usage is 75% and the average willingness to pay was $6,903. This equated to $1,015 per year or 15 cents per kilometre. At 100% probability of driverless car usage the average willingness to pay was $9,727. The rate at which driverless cars will penetrate the market depends primarily on whether consumers are willing to use and pay for the new technology. Young respondents (18 to 36) are the most likely to use driverless cars compared to other age groups and safety was considered the most important determinate of willingness to pay and driverless car usage. We found that there was a significant difference between willingness to pay and the estimated savings that driverless cars may offer such as travel time savings. This indicated that driverless car usage will depend on the level of travel cost savings possible from driverless cars

• Record URL:
  http://atrf.info/papers/2016/index.aspx
• Authors:
  • Ellis, B
  • DOUGLAS, N
  • Frost, T
• Conference:
  • Australasian Transport Research Forum (ATRF), 38th, 2016, Melbourne, Victoria, Australia
• Publication Date: 2016-11

Language

• English

Media Info

• Pagination: 15p
• Monograph Title: 38th Australasian Transport Research Forum (ATRF 2016), Melbourne, 16th - 18th November 2016

Subject/Index Terms

• TRT Terms: Automated vehicle control; Demographics; Mode choice; Population; Safety; Travel behavior; Vehicle safety; Vehicles
• Uncontrolled Terms: Transport costs; Willingness to pay
• Geographic Terms: Australia; New Zealand
• ATRI Terms: Autonomous vehicle; Demography; Modal choice; Transport costs; Travel behaviour; Vehicle safety; Willingness to pay
• ITRD Terms: 3882: Automatic; 263: Economics of transport
• Subject Areas: Safety and Human Factors; Vehicles and Equipment; I10: Economics and Administration;

Filing Info

• Accession Number: 01627432
• Record Type: Publication
• Source Agency: ARRB
• Files: ITRD, ATRI
• Created Date: Feb 27 2017 10:08AM