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Will New Driving Technologies Change the Value of Public Transportation Investments?

Imke Reimers, Benjamin Reed Shiller and Benjamin R. Shiller

No 11956, CESifo Working Paper Series from CESifo

Abstract: We analyze how self-driving vehicles (SDVs) influence commuter behavior and returns to long-lived public transit investments. Using a commuting mode model estimated on detailed home and work location data from Greater Boston, we simulate the widespread entry of SDVs, which offer passive travel similar to transit but use existing road networks. We find that SDVs increase vehicle miles by 40% while decreasing public transit use by about 10%. Transit improvements continue to moderately boost revenues and lower miles driven, but their effects on mileage are small compared to SDVs. These findings highlight planning challenges posed by the emergence of SDVs.

Keywords: self-driving vehicles; public transit investment; infrastructure planning; transportation economics (search for similar items in EconPapers)
Date: 2025
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