RIETI Report August 2018

Demand for automated driving technology

The exponential advancement in artificial intelligence (AI) technology has been prominently displayed in the automotive industries as seen with the development of fully automated vehicles (FAVs). Automated driving technology has already been tested or used in public transportation systems and on highways in many countries, including Japan, and the Japanese government plans to introduce FAVs on selected roads by 2020, with the likelihood of them on the roads sooner than expected. Among the many benefits of automated driving include the reduction of both accidents and traffic congestion, with the latter causing an estimated $10.4 billion loss in Japan. Furthermore, a study found that consumers who owned cars with driving assistance systems were more likely to be positive about purchasing FAVs. In the August issue of the RIETI Report, we present "Demand for automated driving technology" featuring Faculty Fellow Shunsuke Managi, originally posted on VoxEU and based upon a RIETI Discussion Paper.

Managi looks at the customer demand and perception of FAVs through his study which had a response from 246,642 people. He finds that a near-majority are inclined to purchase FAVs, however, a significant 20% responded in the negative, with men being more inclined to purchase. Managi extends his analysis, including looking at consumer characteristics, and then examines the price people would be willing to pay for fully automated driving (FAD) function. Finally, he breaks down the merits and demerits of FAD and introduces several issues that he plans to tackle in his future studies on this topic.

This month's featured article

Demand for automated driving technology

MANAGI ShunsukeFaculty Fellow, RIETI

Artificial intelligence (AI) has advanced exponentially in recent years. Many machines that consumers use daily now contain AI technology. It is also used in automotive industries to develop fully automated vehicles (FAVs), cars that people can use without having to drive.

In many countries, automated driving technology has already been tested or used in public transportation systems and on highways. In Japan, companies such as Toyota and Nissan have tested their automated driving technologies on freeways and local roads. The Japanese government plans to introduce FAVs on selected roads by 2020, and it is likely that drivers will begin to see FAVs on ordinary roads sooner than expected (Managi 2018).

Automated driving offers many benefits, including the reduction of both accidents and traffic congestion.

For example, 96% of traffic accidents on freeways in Japan are due to human errors (mishandling, carelessness, and misjudgements by drivers). It is expected that automated driving technology will eliminate these accidents. Furthermore, almost 40% of Japanese drivers are elderly, and their mishandling of vehicles frequently causes fatal accidents.

To read the full text
https://www.rieti.go.jp/en/columns/v01_0110.html

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