IDEAS home Printed from https://ideas.repec.org/a/eee/ecotra/v23y2020ics2212012220300666.html
   My bibliography  Save this article

The demand for automated vehicles: A synthesis of willingness-to-pay surveys

Author

Listed:
  • Elvik, Rune

Abstract

This paper synthesises the findings of surveys of consumer willingness-to-pay for vehicle automation. Some studies report only mean or median estimates of willingness-to-pay for vehicle automation. Other studies provide data enabling demand functions to be derived. Six demand functions have been estimated and are compared. Maximum willingness-to-pay (around 25,000 to 40,000 US dollars) exceeds low estimates of the added costs of automated vehicles (around 10,000 US dollars). On average, close to 30% of respondents state zero willingness to pay more for an automated car than for a conventional car. Based on current knowledge, it is likely that a majority of consumers will initially find automated vehicles too expensive. However, the price of automated vehicles can be expected to fall as technology matures and vehicles are manufactured in larger numbers.

Suggested Citation

  • Elvik, Rune, 2020. "The demand for automated vehicles: A synthesis of willingness-to-pay surveys," Economics of Transportation, Elsevier, vol. 23(C).
    • Handle: RePEc:eee:ecotra:v:23:y:2020:i:c:s2212012220300666
    DOI: 10.1016/j.ecotra.2020.100179
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2212012220300666
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecotra.2020.100179?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Prateek Bansal & Kara M. Kockelman, 2018. "Are we ready to embrace connected and self-driving vehicles? A case study of Texans," Transportation, Springer, vol. 45(2), pages 641-675, March.
    2. James Murphy & P. Allen & Thomas Stevens & Darryl Weatherhead, 2005. "A Meta-analysis of Hypothetical Bias in Stated Preference Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(3), pages 313-325, March.
    3. Fagnant, Daniel J. & Kockelman, Kara, 2015. "Preparing a nation for autonomous vehicles: opportunities, barriers and policy recommendations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 167-181.
    4. Bösch, Patrick M. & Becker, Felix & Becker, Henrik & Axhausen, Kay W., 2018. "Cost-based analysis of autonomous mobility services," Transport Policy, Elsevier, vol. 64(C), pages 76-91.
    5. Peng Liu & Run Yang & Zhigang Xu, 2019. "Public Acceptance of Fully Automated Driving: Effects of Social Trust and Risk/Benefit Perceptions," Risk Analysis, John Wiley & Sons, vol. 39(2), pages 326-341, February.
    6. 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.
    7. Bansal, Prateek & Kockelman, Kara M., 2017. "Forecasting Americans’ long-term adoption of connected and autonomous vehicle technologies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 49-63.
    8. Tirachini, Alejandro & Antoniou, Constantinos, 2020. "The economics of automated public transport: Effects on operator cost, travel time, fare and subsidy," Economics of Transportation, Elsevier, vol. 21(C).
    9. Wardman, Mark & Chintakayala, V. Phani K. & de Jong, Gerard, 2016. "Values of travel time in Europe: Review and meta-analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 93-111.
    10. Wadud, Zia, 2017. "Fully automated vehicles: A cost of ownership analysis to inform early adoption," Transportation Research Part A: Policy and Practice, Elsevier, vol. 101(C), pages 163-176.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Miltos Kyriakidis & Jaka Sodnik & Kristina Stojmenova & Arnór B. Elvarsson & Cristina Pronello & Nikolas Thomopoulos, 2020. "The Role of Human Operators in Safety Perception of AV Deployment—Insights from a Large European Survey," Sustainability, MDPI, vol. 12(21), pages 1-24, November.
    2. Erdmann, Anett & Mas, José Manuel & de Obesso, Mercedes, 2023. "Disruptive technologies: How to influence price sensitivity triggering consumers’ behavioural beliefs," Journal of Business Research, Elsevier, vol. 158(C).
    3. Ziakopoulos, Apostolos & Oikonomou, Maria G. & Vlahogianni, Eleni I. & Yannis, George, 2021. "Quantifying the implementation impacts of a point to point automated urban shuttle service in a large-scale network," Transport Policy, Elsevier, vol. 114(C), pages 233-244.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Badia, Hugo & Jenelius, Erik, 2021. "Design and operation of feeder systems in the era of automated and electric buses," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 146-172.
    2. Kassens-Noor, Eva & Dake, Dana & Decaminada, Travis & Kotval-K, Zeenat & Qu, Teresa & Wilson, Mark & Pentland, Brian, 2020. "Sociomobility of the 21st century: Autonomous vehicles, planning, and the future city," Transport Policy, Elsevier, vol. 99(C), pages 329-335.
    3. Becker, Henrik & Becker, Felix & Abe, Ryosuke & Bekhor, Shlomo & Belgiawan, Prawira F. & Compostella, Junia & Frazzoli, Emilio & Fulton, Lewis M. & Guggisberg Bicudo, Davi & Murthy Gurumurthy, Krishna, 2020. "Impact of vehicle automation and electric propulsion on production costs for mobility services worldwide," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 105-126.
    4. Li, Dun & Huang, Youlin & Qian, Lixian, 2022. "Potential adoption of robotaxi service: The roles of perceived benefits to multiple stakeholders and environmental awareness," Transport Policy, Elsevier, vol. 126(C), pages 120-135.
    5. Militão, Aitan M. & Tirachini, Alejandro, 2021. "Optimal fleet size for a shared demand-responsive transport system with human-driven vs automated vehicles: A total cost minimization approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 151(C), pages 52-80.
    6. Manivasakan, Hesavar & Kalra, Riddhi & O'Hern, Steve & Fang, Yihai & Xi, Yinfei & Zheng, Nan, 2021. "Infrastructure requirement for autonomous vehicle integration for future urban and suburban roads – Current practice and a case study of Melbourne, Australia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 36-53.
    7. Wadud, Zia & Mattioli, Giulio, 2021. "Fully automated vehicles: A cost-based analysis of the share of ownership and mobility services, and its socio-economic determinants," Transportation Research Part A: Policy and Practice, Elsevier, vol. 151(C), pages 228-244.
    8. Jiang, Like & Chen, Haibo & Paschalidis, Evangelos, 2023. "Diffusion of connected and autonomous vehicles concerning mode choice, policy interventions and sustainability impacts: A system dynamics modelling study," Transport Policy, Elsevier, vol. 141(C), pages 274-290.
    9. Talebian, Ahmadreza & Mishra, Sabyasachee, 2022. "Unfolding the state of the adoption of connected autonomous trucks by the commercial fleet owner industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    10. Gurumurthy, Krishna Murthy & Kockelman, Kara M., 2020. "Modeling Americans’ autonomous vehicle preferences: A focus on dynamic ride-sharing, privacy & long-distance mode choices," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    11. Simpson, Jesse R. & Mishra, Sabyasachee & Talebian, Ahmadreza & Golias, Mihalis M., 2019. "An estimation of the future adoption rate of autonomous trucks by freight organizations," Research in Transportation Economics, Elsevier, vol. 76(C).
    12. Marletto, Gerardo, 2019. "Who will drive the transition to self-driving? A socio-technical analysis of the future impact of automated vehicles," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 221-234.
    13. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).
    14. Hussain, Qinaat & Alhajyaseen, Wael K.M. & Adnan, Muhammad & Almallah, Mustafa & Almukdad, Abdulkarim & Alqaradawi, Mohammed, 2021. "Autonomous vehicles between anticipation and apprehension: Investigations through safety and security perceptions," Transport Policy, Elsevier, vol. 110(C), pages 440-451.
    15. Wu, Jingwen & Liao, Hua & Wang, Jin-Wei, 2020. "Analysis of consumer attitudes towards autonomous, connected, and electric vehicles: A survey in China," Research in Transportation Economics, Elsevier, vol. 80(C).
    16. Aybike Ongel & Erik Loewer & Felix Roemer & Ganesh Sethuraman & Fengqi Chang & Markus Lienkamp, 2019. "Economic Assessment of Autonomous Electric Microtransit Vehicles," Sustainability, MDPI, vol. 11(3), pages 1-18, January.
    17. Taiebat, Morteza & Stolper, Samuel & Xu, Ming, 2019. "Forecasting the Impact of Connected and Automated Vehicles on Energy Use: A Microeconomic Study of Induced Travel and Energy Rebound," Applied Energy, Elsevier, vol. 247(C), pages 297-308.
    18. Huang, Yantao & Kockelman, Kara M. & Quarles, Neil, 2020. "How will self-driving vehicles affect U.S. megaregion traffic? The case of the Texas Triangle," Research in Transportation Economics, Elsevier, vol. 84(C).
    19. Maeng, Kyuho & Jeon, Seung Ryong & Park, Taeho & Cho, Youngsang, 2021. "Network effects of connected and autonomous vehicles in South Korea: A consumer preference approach," Research in Transportation Economics, Elsevier, vol. 90(C).
    20. Tirachini, Alejandro & Antoniou, Constantinos, 2020. "The economics of automated public transport: Effects on operator cost, travel time, fare and subsidy," Economics of Transportation, Elsevier, vol. 21(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecotra:v:23:y:2020:i:c:s2212012220300666. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecotra .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.