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Economy, Environment, Employment: How Driverless Vehicles Might Change Our World

The promise of widespread autonomous vehicles has dominated recent headlines in both the technology and automobile industries, but the idea has been around much longer than that. Public discussions about self-piloting vehicles took place as early as 1939. According to Wired Magazine, GM’s exhibit at the World’s Fair sparked such discussions. In 2010, thanks to Google, the first truly driverless vehicles hit the road. While the obvious benefits of self-driving cars have been discussed, like fewer accidents and better access to safe transportation, there are some unintended consequences worth discussing. From higher unemployment rates to better insurance options, a driverless future has an incredible potential impact on our lives.

Unemployment in Driving Industries

An increase in driverless vehicles could mean an increase in unemployment. According to U.S. labor statistics from 2014, nearly 2.6 million people are actively employed as truck drivers, taxi and independent service drivers, and public transportation operators. If driverless cars become commonplace, the devastating effect on American employment rates would be catastrophic.

Jobs related to the driving industry could be lost as well, like administrative services, management companies, and parent companies supporting trucking or driving positions will be eliminated or downsized.

Loss of Private Car Ownership

Industries and people learn to adapt. An unusual result of this increase in driverless cars could mean the loss of driving abilities in subsequent generations. Auto industries, particularly traditional companies like GM and Ford, will need to either quickly rise to the current market demand or fall to the wayside. Private ownership of cars, for example, may decline, which could “destroy the automobile industry, representing the loss of many jobs both directly and indirectly,” which would have an enormous economic impact.

The Environmental Impact

Cars take up quite a lot of space when taking into account parking lots, driveways, and highways. If fleets of driverless vehicles replaced privately owned cars, the need for parking structures could dwindle and cities could repurpose that space. A common misconception is that self-driving cars will increase traffic in urban areas, but the reality is that driving behaviors and road capacity utilizations may be to blame for congested highways. As pointed out by Dr. Alexander Hars from Driverless Future, “Autonomous cars don’t exhibit the lane-hopping and other congestion-creating behavior [of human drivers].” From reducing delays at traffic light changes to eliminating constant speed changes, driverless cars can mean faster travel times even using traditional driving methods.

Changes in Auto Insurance Structures

If cars become as safe and automated as promised, would we even need insurance? Most insurance companies exist to protect drivers against potential risks that mainly pertain to hazards presented by other drivers. Driverless vehicles may mean a rise in cheap auto insurance because the hazards we pay so much to protect ourselves against would no longer exist. Using Tesla as an example, the Autopilot feature has made Tesla cars safer than any other car on the road. According to the National Highway Traffic Administration, since Autopilot debuted in 2015, crash rates have decreased by 40% for Tesla vehicles. Driverless cars could mean safer roads, better driving conditions, and lower insurance premium payments.

Looking to the Future

There’s no question about whether driverless vehicles will change the landscape of the modern world. For the most part, the benefits far outweigh the consequences. The environmental and economic impacts will certainly be reflected in employment statistics and overall societal costs associated with injuries, private ownership, and construction. If driverless vehicles help in decreasing highway fatalities and costs associated with long-term injuries, we may even see a decrease in overall health care costs. Automated public transportation could reduce ongoing infrastructure costs and increase accessibility. As we approach the day in which driverless cars dominate the roadways, we may feel its impact in many more unexpected ways.

Mark Palmer has been writing for most of his life. He specializes in business tech. Mark strives to stay on top of industry trends and keep current with up to date technoloy strategies. His extensive knowledge and experience gives readers a unique and clear understanding of complex subjects.

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