Recent development in connected vehicle technology or equivalently vehicular ad hoc networks (VANET) has stimulated tremendous interests among decision makers, practitioners, and researchers due to the potential safety and mobility benefits provided by these technologies. A primary concern regarding the deployment of connected vehicle technology is the degree of market penetration required for effectiveness. This paper proposes a methodology to analyze the benefit of highway capacity gained from connected vehicle technology. To fulfill this purpose, a model incorporating the effects of connected vehicle technology on car following is formulated, building on which a rough estimate of the resulting capacity gain is derived. A simulation study is conducted to verify the model, and an illustrative example is provided to show the application of the methodology. This work provides decision makers and practitioners with a basic tool to understand the mobility benefit obtained from connected vehicle technology and how such benefit varies as market penetration changes.
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