E-Commerce, Delivery Drones and Their Impact on Cities

• DOI: 10.2139/ssrn.4248702
• Publication Date: 2022-10-22T01:23:42Z
• Authors: Anna Straubinger; Henri L.F. de Groot; Erik Verhoef
• Keywords: Drone

E-commerce has gained importance over the last years and COVID-19 pandemic further strengthened this development. With increasing opportunities that novel transport technologies, amongst them cargo drones, offer e-commerce is likely to even become more attractive in upcoming years. This paper therefor analyses long-run effects of specifically impact a shift towards package delivery via drones. Using polycentric urban spatial general equilibrium model, incorporating different retail channels, we model consumer’s choice between local shopping, online shopping drone truck. Due mechanisms changes behavior potentially result home work location choices or labor supply choice. The hence allows assess long run also on related markets such as for land, goods. A numerical simulation shows each additional channel adds welfare channels results households companies.