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Grounding the case for a European approach to the regulation of automated driving: the technology-selection effect of liability rules

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  • Andrea Bertolini

    (Scuola Superiore Sant’Anna, Dirpolis Institute)

  • Massimo Riccaboni

    (IMT Lucca, Institute for Advanced Studies)

Abstract

In the current paper, we discuss the need for regulation at EU level of Connected and Automated Driving solutions (henceforth CAD) based on multiple considerations, namely (i) the need for uniformity of criteria across European Member States, and (ii) the impact that regulation—or the absence of it—has on the proliferation of specific technological solutions. The analysis is grounded on legal and economic considerations of possible interactions between vehicles with different levels of automation, and shows how the existing framework delays innovation. A Risk-Management Approach, identifying one sole responsible party ex ante (one-stop-shop), liable under all circumstances—pursuant to a strict, if not absolute liability rule—is to be preferred. We analyse the solution adopted by some Member States in light of those considerations and conclude that none truly corresponds to a RMA approach, and differences will also cause market fragmentation. We conclude that because legal rules determine what kind of technological application is favoured over others—and thence they are not technology-neutral—uniformity across MSs is of essential relevance, and discuss possible policy approaches to be adopted at European level.

Suggested Citation

  • Andrea Bertolini & Massimo Riccaboni, 2021. "Grounding the case for a European approach to the regulation of automated driving: the technology-selection effect of liability rules," European Journal of Law and Economics, Springer, vol. 51(2), pages 243-284, April.
    • Handle: RePEc:kap:ejlwec:v:51:y:2021:i:2:d:10.1007_s10657-020-09671-5
    DOI: 10.1007/s10657-020-09671-5
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    References listed on IDEAS

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    1. Steven Shavell, 2019. "On the Redesign of Accident Liability for the World of Autonomous Vehicles," NBER Working Papers 26220, National Bureau of Economic Research, Inc.
    2. Eric A. Helland & Alexander Tabarrok, 2012. "Product Liability and Moral Hazard: Evidence from General Aviation," Journal of Law and Economics, University of Chicago Press, vol. 55(3), pages 593-630.
    3. Kalra, Nidhi & Paddock, Susan M., 2016. "Driving to safety: How many miles of driving would it take to demonstrate autonomous vehicle reliability?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 182-193.
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    Cited by:

    1. Gérard Mondello, 2022. "Strict liability, scarce generic input and duopoly competition," European Journal of Law and Economics, Springer, vol. 54(3), pages 369-404, December.

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