According to a new study from the University of Tennessee, the rise of driverless cars and electric vehicles will completely reshape Tennessee's economy, tax revenue and every day life.
Professor Bill Fox with UT's Haslam College of Business wrote the study along with research associates Alex Norwood and Vickie Cunningham, which looked at Tennessee's motor vehicle industry.
The study outlines changes that would be expected in the coming years with the rise of autonomous vehicles, concluding Tennessee must change its education system, infrastructure planning, and vehicle regulations.
The study said nearly one in six jobs in Tennessee is tied closely to the vehicle sector in some one, including manufacturing, support and use of vehicles. The study said employment in many of those industries will change drastically, because fleet ownership of driverless vehicles through businesses like ride sharing services will be more likely than individual ownership.
“You would request a car, much like you do with a taxi or Uber now,” Fox said. “That means you’re not taking a car to the repair shop, you’re not filling it up with gas, and you’re not budgeting for new tires. This shared mobility benefits Tennessean households, potentially saving them up to $5,000 per year.”
Hundreds of thousands of workers in Tennessee who use vehicles intensively as part of their jobs, such as ambulances, firefighters, plumbers and others would see their jobs transformed with the advent of driverless vehicles, according to the study.
“It is important to remember that new vehicle-related jobs will be created, as will other jobs in the economy,” Fox said. “Tennessee must transform aggressively if it is to be an economic leader as these many changes occur, and a big challenge is helping existing workers transition to the new opportunities.”
The study goes on to suggest ways Tennessee would benefit by getting ahead of the curve and adopting policies, such as growing its automotive industry and changing its tax structure to maintain roads, bridges and other infrastructure.
You can read the full report here:
