Driverless cars to worsen traffic gridlock

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By Leith van Onselen

Economist Brian Haratsis predicts that around 30 million vehicles will be on Australian roads by 2030, compared to 19 million currently, comprising a combination of traditional and driverless cars. He predicts that the increased use of driverless cars will lead to greater congestion as the cost of commuting is expected to fall, with the number of personal transport journeys expected to increase accordingly. An increase in deliveries resulting from growth in online retailing is also expected to contribute to increased congestion. From The AFR:

“Congestion is going to get a lot worse,” Mr Haratsis told The Australian Financial Review after giving a presentation at an International Driverless Vehicle Summit in Adelaide.

“Roads will become real estate.”

With Australia’s population projected to grow by around 400,000 people each year, thanks mostly to mass immigration, congestion will unambiguously worsen. Driverless cars may simply add more fuel to the fire.

unconventionaleconomist@hotmail.com

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.