Smart Policy for Smart Vehicles: Regulatory revisions to incentivize efficient autonomous automobiles

Abstract

Transportation accounts for nearly 30% of the United States’ annual greenhouse gas emissions and is currently the fastest growing source of emissions by economic sector. National policies are therefore needed to mitigate the climatic impact of vehicular travel. Autonomous vehicle technologies, such as adaptive cruise control and real-time route optimization, can potentially improve fuel efficiency. However, many emerging technologies remain too inefficient to meet federal fuel economy standards set by the U.S. Environmental Protection Agency and the National Highway Traffic Safety Administration. The current regulatory framework therefore hinders vehicle manufacturers from researching and developing greener autonomous technologies. In this analysis, we argue that these federal agencies should adopt policies like technology waivers, regulatory credits, environmentally preferable purchasing, and educational programs to stimulate the development of more efficient autonomous vehicle technologies. These policies would incentivize manufacturers to widely develop and deploy fuel-saving technologies that could potentially realize substantial reductions in greenhouse gas emissions.