Assessing the Socioeconomic Impacts of Intelligent Connected Vehicles in China: A Cost–Benefit Analysis

Xu Kuang, Fuquan Zhao, Han Hao and Zongwei Liu
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Xu Kuang: State Key Laboratory of Automotive Safety and Energy, Tsinghua University, Beijing 100084, China
Fuquan Zhao: State Key Laboratory of Automotive Safety and Energy, Tsinghua University, Beijing 100084, China
Han Hao: State Key Laboratory of Automotive Safety and Energy, Tsinghua University, Beijing 100084, China
Zongwei Liu: State Key Laboratory of Automotive Safety and Energy, Tsinghua University, Beijing 100084, China

Sustainability, 2019, vol. 11, issue 12, 1-28

Abstract: The deployment of intelligent connected vehicles (ICVs) is regarded as a significant solution to improve road safety, transportation management, and energy efficiency. This study assessed the safety, traffic, environmental, and industrial economic benefits of ICV deployment in China under different scenarios. A bottom-up model was established to deal with these impacts within a unified framework, based on the existing theories and literature of ICVs’ cost–benefit analysis, as well as China’s most recent policies and statistics. The results indicate that the total benefits may reach 13.25 to 24.02 trillion renminbi (RMB) in 2050, while a cumulative benefit–cost ratio of 1.15 to 3.06 suggests high cost-effectiveness. However, if the government and industry only focus on their own interests, the break-even point may be delayed by several years. Hence, an effective business model is necessary to enhance public–private cooperation in ICV implementation. Meanwhile, the savings of travel time costs and fleet labor costs play an important part in all socioeconomic impacts. Therefore, the future design of ICVs should pay more attention to the utilization of in-vehicle time and the real substitution for human drivers.

Keywords: intelligent connected vehicle; socioeconomic impacts; cost–benefit analysis; scenario analysis; China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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