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Consumer demand for fully automated driving technology

Author

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  • Shin, Kong Joo
  • Tada, Naoto
  • Managi, Shunsuke

Abstract

Automated driving technology is one of the most important applications of advanced artificial intelligence technology, which is being extensively incorporated into transportation worldwide. Policy makers expect the introduction of fully automated vehicles (FAV) to significantly reduce the number of accidents that are due to human error and road congestion. Using originally collected large-sample survey data from 2015, this paper evaluates current consumer demand in terms of purchase intention (PI) and willingness to pay (WTP) for FAV in Japan. On average, consumers expect FAV to be available for purchase in approximately 13 years, and 47% of respondents report positive PI. Average WTP was approximately 0.19 million yen (1,650 USD) and 0.29 million yen (2,520 USD) for respondents with positive PI. Using regression analysis, we also analyze the determinants of PI and WTP, such as the subjective merits and demerits of FAV as well as other household and city characteristics.

Suggested Citation

  • Shin, Kong Joo & Tada, Naoto & Managi, Shunsuke, 2019. "Consumer demand for fully automated driving technology," Economic Analysis and Policy, Elsevier, vol. 61(C), pages 16-28.
    • Handle: RePEc:eee:ecanpo:v:61:y:2019:i:c:p:16-28
    DOI: 10.1016/j.eap.2018.10.002
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    References listed on IDEAS

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    1. Uchida, Hirotsugu & Onozaka, Yuko & Morita, Tamaki & Managi, Shunsuke, 2014. "Demand for ecolabeled seafood in the Japanese market: A conjoint analysis of the impact of information and interaction with other labels," Food Policy, Elsevier, vol. 44(C), pages 68-76.
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Webb, Jeremy, 2019. "The future of transport: Literature review and overview," Economic Analysis and Policy, Elsevier, vol. 61(C), pages 1-6.
    2. Md. Mokhlesur Rahman & Jean-Claude Thill, 2023. "What Drives People’s Willingness to Adopt Autonomous Vehicles? A Review of Internal and External Factors," Sustainability, MDPI, vol. 15(15), pages 1-29, July.
    3. Sunbin YOO & KUMAGAI Junya & KAWABATA Yuta & MANAGI Shunsuke, 2022. "Achieving Inclusive Transportation: Fully Automated Vehicles with Social Support," Discussion papers 22017, Research Institute of Economy, Trade and Industry (RIETI).
    4. Elvik, Rune, 2020. "The demand for automated vehicles: A synthesis of willingness-to-pay surveys," Economics of Transportation, Elsevier, vol. 23(C).
    5. Zhang, Chi & Managi, Shunsuke, 2021. "Childcare availability and maternal employment: New evidence from Japan," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 83-105.

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    More about this item

    Keywords

    Automated driving; Consumer demand; Purchase intention; Willingness to pay; Consumer survey; Japan;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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