Potential economic benefit of driverless cars in Canada $65 billion annually

Automated vehicles – or self-driving cars – could be on Canadian roads between 2020 and 2025, with the economic benefits being more than $65 billion per year, says a new report from the Conference Board of Canada.

That benefit could be seen through collision avoidance, fuel cost savings and avoiding congestion, according to the report, completed in collaboration with the Van Horne Institute and the Canadian Automated Vehicles Centre of Excellence.

“The potential scope for impacts of automated vehicles on Canada is profound,” Vijay Gill, director of policy research at the Conference Board of Canada, noted in a statement on the report.

“Self-driving cars could free up driving time, significantly reduce the number of car accidents, minimize road congestion and reduce the amount of fuel that we consume,” Gill said.

“However, these new vehicles will pose some economic and social challenges including possible job-displacement and required employment retraining.”

Of the 2,000 annual road fatalities in Canada (based on 2011 figures), 1,600 could be prevented through automated vehicle use, the Conference Board suggests.

Overall, economic benefit can be broken down as:

• Fewer collisions – $37.4 billion
• Saving drivers’ time – $20 billion
• Fuel cost savings – $2.6 billion
• Reduced traffic congestion – $5 billion

“Jobs and trades will change as direct and indirect employment displacement may occur in transport, truck and courier services, taxi and bus drivers, auto insurance, driving instructors and parking attendance,” the Conference Board nored.

“On the positive side, there will be new business opportunities for the auto and technological industries related to the design and manufacture of sensors, software, etc. for AVs.”