Anyone who gets behind the wheel is painfully aware of the personal costs of driving an automobile, including $4-per-gallon gasoline and expensive maintenance.
But what about the societal costs of personal transportation?
Of the estimated $3 trillion yearly cost of personal transportation in the United States, for example, nearly 40 percent ($1.1 trillion) is “societal,” related to congestion, crashes, parking, roads, traffic services, and pollution.1 These costs are, in fact, a “hidden tax” amounting to nearly $7,000 per vehicle per year.
The Cisco Internet Business Solutions Group (IBSG) believes that vehicle connectivity can act as a catalyst to help pay for the societal costs of personal transportation, while unlocking additional benefits.
What’s more, governments now have the opportunity to work with other key stakeholders—insurance companies, automotive manufacturers, and service providers—to create a next-generation transportation business model around connected vehicles and a smart, connected traffic infrastructure. Read More »