Socio-economic and business economics impact

C2X technologies are a rising market and ready for large-scale deployment in the foreseeable future. DRIVE C2X’s goal is to pave the way for market introduction and implementation. By having a strong focus on Europe, the project will lay out the basis of generating economic value in European markets. To achieve this, the project has a two pronged approach:

First, cooperative systems will be evaluated from a socio economic point of view with a benefit/cost analysis. The benefit/ costs analysis is the tool chosen by public authorities if a decision needs to be taken on investments in infrastructure. Since implementation of cooperative systems technology requires considerable investments in infrastructure a benefit/cost analysis needs also be conducted for this technology.  Such a benefit/cost analysis considers all effects an investment will have that are of societal relevance. In case of road traffic the most relevant effects are improvements in safety and efficiency resulting primarily in reductions in accident costs, time costs, emission costs and cost of vehicle operations.

Impact channels of C2X

In PRE-DRIVE C2X existing tools for benefit/cost analysis of driver assistance systems, which had been prepared in previous EU funded research projects such as CHAUFFEUR 1 and 2, CarTalk 2000, SEISS or eImpact have been extended in order to be applied to cooperative systems technology. Based on the data collected on the seven DRIVE C2X test sites this tool will now be applied and is expected to deliver a good overview on the societal impact of vehicular communication on European basis.

Whereas public authorities primarily rely on benefit/cost analysis as basis for investment decisions OEMs and private investors decide on investments in new technology on the basis of break even point calculations based on model business cases.

With the establishment of a business case, more will be known about the economic viability of the DRIVE C2X functions from the perspective of the OEM’s and other investors. The purpose of the business case is to provide more insight in financial and non-financial performances and based on this the investors and other involved parties in the DRIVE C2X project can plan and make decisions. Before reaching this end result, a specific business case logic guarantees a structured and efficient approach.

DRIVE C2X business case logic

This business case logic has been developed in PRE-DRIVE C2X and will be applied in DRIVE C2X in order to identify realistic business models for vehicular communication, which guarantee revenue streams back to those, who have to invest initially in this technology,  that pay back for these investments at least mid term.

The business case logic and the tools for benefit /cost analysis developed in PRE-DRIVE C2X and to be applied in DRIVE C2X are described in PRE-DRIVE C2X Deliverable D5.2-5.3 Social, political economics and business economics impacts of cooperative systems, potential business models together with the results of a pilot application.

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