Strategies to Advance Automated and Connected Vehicles (2017) / Chapter Skim
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6Foundational Research: Social Welfare and Market Economics The analytical foundation for identifying the potential policy and planning strategies reviewed in this document involved an examination of mechanisms by which AVs and CVs could create desirable outcomes for society. These mechanisms could either encourage positive effects or reduce negative ones.
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7With social welfare economics as the foundation, researchers identified categories of policy levers. The groups of policy strategies presented below are most common in internalizing externalities within the traditional roles of state, regional and local government: Economic Instruments: These are policy strategies that provide an explicit price signal by applying a tax, fee, or subsidy to effect a specific outcome.
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