JumboBuc
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Can you or someone else clarify how the private sector is going to pick up some/most of the bill? I don't see how they can make a profit by investing in infrastructure. Seems like the only way we can get infrastructure updates is through infrastructure bills, which are very rare lately, and, like you mentioned, inefficient.
First off, I don't believe that the benefits to be gained through autonomous driving technology necessitate significant infrastructure spending. The technology to drive fully autonomously on existing roads may not quite be there yet in 2016, but it likely will be there in 202X. And if it isn't quite there for driving in dense cities, it will almost surely be there for driving on highways.
As far as the private sector picking up the bill for infrastructure spending, look no further than New Balance / Boston Landing. If large players in any space believe that Y dollars of infrastructure spending would unlock X dollars of value to their bottom line, and Y<X, then it is in the interests of the private sector entities to make it happen. And given the enormous amount of money that certain entities stand to gain by switching to autonomous driving technology, it becomes likely that Y<X.
And plenty of infrastructure updates do "just happen" when the financial calculus backs them up. Look at the transition to LEDs first in stoplights and now in streetlights. Before long, it'll be hard to find a non-LED light shining on a roadway. This hasn't required any sort of concerted effort, per se, it's just been a process of routine upgrades that make sense financially. I'd imagine that the technology and adjustments needed to necessitate autonomous vehicles would progress similarly.