Self Driving Cars

Google-car-front

Many companies like Google and Tesla are investing in self driving cars. Self driving vehicles allow everyone to travel easily regardless of their driving ability. Because they prove to be safer, they will have a large impact on the society.

Fatalities are the largest cost in car accidents. On average, 92 lives are lost daily in the United States in incidents related to distracted drivers. Since self driving cars would have prevented these deaths, they would have saved 33,580 lives yearly. That also translates to $519M in savings related to medical costs. Driverless cars would have a dramatic improvement on the society. However, even if the technology become scalable, it would take time for people to adopt. In the past, we have seen government subsidies for new technology such as electric vehicles. If we expect mass adoption, then the government is likely to provide incentives to compensate for switching costs.

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