Connected and automated vehicles: effects on pricing

César Nú-ez and Alejandro Tirachini

Chapter 13 in Handbook on Transport Pricing and Financing, 2023, pp 252-271 from Edward Elgar Publishing

Abstract: In this chapter, several issues about transport pricing theory and automated vehicles are reviewed. The study covers traditional private and public transport modes, plus shared mobility systems. We briefly introduce the expected benefits and shortcomings of the automated vehicle technology, and then analyse the effect of vehicle automation on the modal attributes that are relevant to the pricing of transport services. Expected effects as discussed in the scientific literature are summarised. An optimal transport pricing model is presented considering three modes: private car, public transport, and an active mode, in order to uncover the potential effect of vehicle automation on first-best prices. We find that cost reduction due to automation push towards lower optimal fares for both private cars and public transport, making both modes more accessible. Vehicle automation has the potential to make motorised transport more attractive relative to active modes, therefore, future pricing schemes should include the health and environmental benefits of active mobility.

Keywords: Economics and Finance; Environment; Geography; Politics and Public Policy Urban and Regional Studies (search for similar items in EconPapers)
Date: 2023
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