VANETs and IoT in Smart Cities: Technology Overview and Economic–Policy Implications

Abstract

The integration of Vehicular Ad Hoc Networks (VANETs) into Internet of Things (IoT)-enabled smart city environments promises to enhance road safety, traffic efficiency, and intelligent transportation services. This paper presents an overview of the key enabling technologies for VANET-based smart transportation, including wireless communication standards from DSRC to cellular 5G V2X, vehicular sensing and data networking, localisation techniques, and security mechanisms, and explains how these technologies converge within smart cities. In addition to the technical perspective, we examine the economic and policy implications of deploying VANET and IoT systems at scale. We analyse the expected economic benefits, such as reduced accident costs and congestion and the creation of new business opportunities, alongside the challenges of high infrastructure investment and the need for critical mass adoption. We also highlight policy considerations ranging from spectrum allocation and technology standardisation to data privacy and regulatory frameworks that can facilitate or hinder implementation. By combining a technological survey with an economic and policy analysis, this work aims to inform researchers, city planners, and policymakers about the opportunities and challenges involved in realising secure, efficient, and economically viable vehicular networks in future smart cities.