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Impact of autonomous vehicles on the choice of residential locality

ABSTRACT Introducing autonomous vehicles (AVs) reduces generalized transportation costs and encourages people to relocate. Understanding the subsequent changes in urban structure can help predict the future development of urban economies and policies. Transportation connects multiple zones in cities, and by improving traffic flow and ease directly impacts the economies of various markets. Each direct impact then also indirectly affects related markets. Therefore, a spatial computable general equilibrium model that connects multiple zones via a transportation network is suitable for analyzing the impact of a new transport system. This study constructs a model to simulate the effects of AVs on residential location choice. The results show that increased prevalence of AVs steers people toward suburbs with poor public transportation. Thus, high-income workers react more to technological progress, while low-income workers react more to lowered ownership costs. Consumers’ location choices and budgets also affect residential zones’ development. Therefore, regional policy goals must be clarified and appropriate target consumer groups set when introducing AVs.