Consumer demand for fully automated driving technology

Kong Joo Shin, Naoto Tada, Shunsuke Managi

Research output: Contribution to journalArticlepeer-review

19 Citations (Scopus)


Automated driving technology is one of the most important applications of advanced artificial intelligence technology, which is being extensively incorporated into transportation worldwide. Policy makers expect the introduction of fully automated vehicles (FAV) to significantly reduce the number of accidents that are due to human error and road congestion. Using originally collected large-sample survey data from 2015, this paper evaluates current consumer demand in terms of purchase intention (PI) and willingness to pay (WTP) for FAV in Japan. On average, consumers expect FAV to be available for purchase in approximately 13 years, and 47% of respondents report positive PI. Average WTP was approximately 0.19 million yen (1,650 USD) and 0.29 million yen (2,520 USD) for respondents with positive PI. Using regression analysis, we also analyze the determinants of PI and WTP, such as the subjective merits and demerits of FAV as well as other household and city characteristics.

Original languageEnglish
Pages (from-to)16-28
Number of pages13
JournalEconomic Analysis and Policy
Publication statusPublished - Mar 2019

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)


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