Thursday, March 19, 2015

Paul Romer on Driverless Cars and Real-Estate

I like the way Paul Romer teaches to my intuition.

"the way to think about the expense of accord, the social cost of accord, is to think about the real estate it uses. Because when you drive a car down the street you are using some very scarce and valuable real estate at a particular time and day. Especially at rush hour. And the thing about a car driven by a human is it takes a lot more real estate than a car that's autonomously controlled, because humans have to allow a lot more distance between vehicles, because we have slower reaction times. So, one way to get excited about autonomous vehicles--I mean, I think a lot of people like the engineers who thought about this, thought about this as a way this saves time for somebody who would be driving and now doesn't have to drive. But the other way that may be more important in terms of the social value to think about these, is think about them as transport modes that use a lot less of the scarce, valuable real estate that we have in our streets."

The most recent Econtalk is a good one.