Economic Benefits of Cycling

The economic benefits of cycling have gained increased recognition in recent years. Spiralling fuel costs and urban congestion has refocused attention towards less energy and space intensive forms of transport. Cycling, with no oil requirements, offers an effective way to lower the pain at the pump. The benefits extend beyond the individual and flow to the wider community, as each additional dollar not spent on fuel can be injected into more productive sectors of the economy. Traffic congestion also impacts negatively on the economic performance of our urban areas. Taking around 1/10 the road space of a car, bicycles are an effective tool to unclog our congested streets.


Australia

  • A new publication released today by the Cycling Promotion Fund documents the rising cost of motoring and the economic benefits of cycling. Produced by the Cycling Promotion Fund, Economic Benefits of Cycling for Australia brings together the costs and benefits from key areas, including transport, health and environmental sectors.  The PDF document Economic Benefits of Cycling for Australia (1.7 Mb). View PDF

  • ABC, Radio National: The National Interest podcast (6 June 2008) - "On ya bike!", guests Cr Jane Prentice; Chair Brisbane City Council's Public and Active Transport Committee and Elliot Fishman; Director Institute for Sensible Transport, presenter Peter Mares and producer James Panichi
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    Worried about high petrol prices? Weekly fuel bill burning a hole in your pocket? Well, perhaps it's time to consider pedal-power. Of course, cycling isn't an option for everyone, but a number of councils in Australia think the time is right to throw some infrastructure at potential cyclists, to see if they'll take the bait. Take Brisbane City Council: it has some interesting ideas and says it's ready to put $100 million into bicycle facilities over four years. Of course, there's much more to it than that: no matter how many bike-paths, no matter what the health benefits, no matter how high petrol prices, some people either don't feel safe on two wheels or consider it downright daggy. So, what can - or should - Australian governments do to encourage cycling?

  • State Government of Victoria, Australia, Department of Human Services
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    The costs associated with buying a new vehicle comprise much more than just the purchase price. Buyers should ask for the ‘on-road’ or ‘changeover’ (when trading in) price.  This includes the dealer delivery charge, compulsory third party insurance, registration, motor vehicle duty, number plate fees, optional extras and adjustment for the trade-in vehicle.

    Other costs after the vehicle has been delivered include comprehensive or third party property insurance, roadside assistance, fuel and maintenance costs.
    Important considerations besides the cost of a new car include quality, vehicle specifications and safety ratings.

  • Australian Bicycle Council, website, Benefits of cycling,
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    A great resource on health economic, social, environmental and other benefits of cycling.

  • Tranter, P., May, M., 2005, Using the concept of Effective Speed as a stimulus for travel behaviour change and policy development, University of New South Wales for the Australian Greenhouse Office, Australian Government.
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    Effective speed incorporates the time required to earn the money to cover all the costs associated with car ownership and use into vehicle speed. This calculation results in some surprising effective speeds for different modes of transport. Bicycles emerge as one of the fastest forms of transport.
  • Queensland Transport, 2007, Benefits of Cycling.
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    This site outlines the environmental, economic, transport and social benefits of cycling.
  • Department of Human Services, 2004, Planning for healthy communities, Victorian Government, Melbourne.
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    This document outlines the most effective health promotion strategies for preventing cardiovascular disease and type 2 diabetes. It assesses the economic costs of both these diseases. Cycling features throughout the document as an effective response to lowering the costs of cardiovascular disease and type 2 diabetes for the community.
  • TravelSmart (VIC), website, Cycling and walking benefits.
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    Provides evidence on the benefits of walking and cycling, focused on workplace outcomes, such as absenteeism.
  • Austroads Guide - AGPE08/06 : Guide to Project Evaluation - Part 8: Examples this guide can be purchased here
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    Part 8 of the Guide to Project Evaluation (the Guide) presents worked examples demonstrating appropriate use of project evaluation techniques applied to a selection of infrastructure upgrading projects commonly faced by practitioners. Some of these examples are updated and expanded from the Austroads Benefit Cost Analysis Manual (1996), and are intended to demonstrate the benefit-cost analysis (BCA) methodology and techniques described in Part 2. Each of the nine worked examples (flood mitigation, sealing and realignment, bridge maintenance, ferry upgrade, blackspot evaluation, timing of project, bus priority, town bypass and road widening) is linked to an executable Excel spreadsheet showing all relevant BCA calculations.

International

  • Crunching the Numbers ($$$) on Bike Commuting
    Michael Graham Richard, 9 March 2010, Canada: TreeHugger - Cars & Transportation (bikes) Via CarFree.us Visit Site
    "I knew I was benefiting myself and the environment by commuting without a car, but to see the real impact is very amazing."
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  • Transport: External Cost of Transport In Switzerland
    Department of the Environment, Transport, Energy and Communications
    The term «external transport costs» denotes those costs imposed, but not borne by users of the mobility infrastructure. Though chiefly incurred in the environmental and health sectors, they also feature among those costs arising from traffic-related building damage and depreciation. Expenditure borne by society as a whole for public service provision is not allocated to the external transport costs.
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  • Estimates of the External Costs of Transport in 2007
    KOTI World-Brief, Vol. 1, No. 3, Korea Transport Institute (Visit Site ), July, pp. 8-10;
    This study estimates that during 2007, South Korean household expenditures on transportation totaled 11.4% of GDP, and external transportation costs (congestion delays, accident damages and pollution emissions) totaled 5.4% of GDP. The study compares South Korea's transport costs with other countries and indicates changes over time.
    View PDF
  • Sponsors Sold on Health, Economic Benefits of Minneapolis Bike-Share
    Ben Fried, 8 February 2010, StreetsBlog-New York
    Don't count out Boston just yet, but it looks like Minneapolis may be the first American city out of the gate with a public bicycle system of 1,000 bikes or more. Last week, the non-profit Nice Ride Minnesota selected the Public Bike System Company (the same firm behind Montreal's Bixi) to install its system, which is slated to feature 1,000 bicycles at about 75 stations when the first phase wraps up later this year.
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  • The Economic Benefits of Bicycle Infrastructure Investments
    Darren Flusche, League Policy Analyst, June 2009
    Today the national bicycling industry contributes an estimated $133 billion a year to the U.S. economy.i It supports nearly 1.1 million jobs and generates $17.7 billion in federal, state, and local taxes. Another $46.9 billion is spent on meals, transportation, lodging, gifts and entertainment during bike trips and tours.
    The League of American Bicyclists - Visit Site
    Full document (13 meg PDF) View PDF
  • An economic evaluation of health-promotive built environment changes
    Jessica Y. Guo, and Sasanka Gandavarapu, 17 October 2009, Department of Civil and Environmental Engineering, University of Wisconsin – Madison, USA, Published by Elsevier Inc.
    This study aimed to help public investment decision makers see the greatest return on their built environment investments by developing an analysis framework for identifying the most promising improvement strategies and assessing the attainable return on investment.
    This paper will need to be purchased from Elsevier Inc.
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  • The Economic Value of Active Transportation
    Ryan Snyder, (date unknown) A Fact Sheet, RYAN SNYDER ASSOCIATES, LLC, Visit Site
    Active transportation and livability should be funded because governments can recover their investment through enhanced tax revenues, and developers can recoup their investment in higher sales or rents.
    View PDF
  • Benefit-cost analysis of bicycle facilities
    Bicyclinginfo.org
    How much do bicycle facilities cost? Can we quantify their benefits? In what cases do estimates of benefits outweigh costs?
    If your community is considering building a new bicycle facility, you can use this tool to estimate costs, the demand in terms of new cyclists, and measured economic benefits (e.g., time savings, increased livability, decreased health costs, a more enjoyable ride).
    Access the analysis tool - Visit Site
  • The Manifold Value of Walkable Places
    Lily Bernheimer, 28 August 2009, StreetsBlog.org
    As Elana Schor wrote here a few weeks ago, transportation reform is health reform. The connection between active transportation and public health took center stage at PA Walks and Bikes this week, where Michele Barrett shared some startling statistics on the huge toll obesity takes in Pennsylvania:
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  • BIKE & WALK TO MONEY
    Michele Barrett, 23 August 2009, LiveableStreets - Community
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  • New Study Shows More Walkable Homes Are Worth More
    Posted by Sheila, 18 August 2009, CEO's for Cities
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  • Mountain Bikes Empower Cacao Farmers in Congo
    Jeff Nield, 26 June 2009, Canada: TreeHugger - Food & Health
    A few months ago I posted about Original Beans and the true cost of chocolate. The company is has committed to planting a tree in the country of origin for every bar sold. And now, Original Beans is celebrating a partnership with mountain biking legend Hans Rey's Wheels4Life foundation, that will allow cacao farmers in the Congo much needed mobility.
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  • Making the invisible visible - the real value of park assets
    CABE space, (2009), Commission for Architecture and the Built Environment
    • Making the invisible visible - the real value of park assets (summary) (PDF, 616.40 kb) View PDF
    • Making the invisible visible - the real value of park assets (full report) (PDF, 5.89 mb) View PDF

      In Making the invisible visible: the real value of park assets CABE challenges the ‘invisibility’ of parks and green spaces within current asset management planning. An improved understanding of the current value of park and green space assets is an important first step in better strategic management and in assisting local authorities in using their assets to make a positive difference to communities.
  • Planning for Cycling
    SQW consulting, (2008) Report (1.2 Meg) prepared for Cycling England
    The aim (of the report) is to encourage local authorities to treat cycling investments alongside mainstream transport projects, balancing the full costs and benefits for each case before making rational decisions. The report finds that despite good intentions, the challenges of understanding and applying the full benefits, and a lack of evidence on the performance of cycling investments, remain obstacles to achieving this aim.
    View PDF

    SQW consulting, (2008) Planning for Cycling, Executive Summary, prepared for Cycling England
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  • Encouraging Bicycling and Walking - The State Legislative Role
    Shinkle, D. & Teigen, A. (2008) National Conference of State Legislatures: The Forum for America's Ideas, Washington USA
    The report first provides an overview of recent trends in bicycling and walking and the related transportation, economic, public and environmental health benefits. A snapshot of the current state of bicycling and walking in the United States follows. Subsequent chapters examine state legislative activity in three key areas: funding, planning and safety.
    Visit Site to purchase the PDF
  • Velo.Info - Cycling and Economics  
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    This briefing focuses on the economic costs and benefits of transport View PDF  and the role cycling can play in reducing those costs. The following topic areas are discussed:
    • The external costs of transport
    • The economic value of cycling
    • Increased urban efficiency and quality
    • Time and money savings on the road
    • Savings on infrastructure
    • Reduced environmental costs
    • Reduced health costs
    • Improved road safety
  • Bike Lanes, On-Street Parking and Business: A Study of Bloor Street in Toronto’s Annex Neighbourhood
    The Clear Air Partnership, (2009), Toronto
    This report takes a closer look into fears that improved walking and biking conditions through reallocation of road space would hurt business.
    View PDF
  • Active Transportation for America - The Case for Increased Federal Investment in Bicycling and Walking
    Gotschi, Dr T. & Mills, K.J.D. (2008) Rails-to -Trails Conservancy, USA
    To learn more about Rails-to-Trails Conservancy and its role in making trails, walking and biking a part of the national transportation solution, visit Visit Site .
    View PDF
  • Quantifying the benefits of non-motorized transportation for achieving mobility management objectives
    Litman, T., 2004, Victoria Transport Policy Institute, Victoria, Canada.
    This paper outlines the numerous benefits associated with active transport modes such as cycling. It discusses the methods available to quantify the social, economic, environmental and transport benefits of cycling.
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  • Win-win transportation solutions: Smart transportation strategies can achieve emission reduction targets and provide other important economic, social and environmental benefits,
    Litman, T., 2007, Victoria Transport Policy Institute, Victoria, Canada.
    This paper introduces a range of market-based policy reforms aimed at increasing transport efficiency, improving health and reducing emissions.
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  • The economic significance of cycling: A study to illustrate the costs and benefits of cycling policy
    Spreekmeester, R., Wittink, R., Van Den Berg, J., 2000, VNG Uitgeverij, The Hague.
    An important, unique contribution, this document assesses the various costs and benefits of cycling. Their wide ranging analysis covers the costs of traffic and infrastructure, economic considerations and the health and environmental benefits of cycling, to name just a few.
    View PDF
  • Economic appraisal of local walking and cycling routes
    Sustrans, 2006, Sustrans, Bristol, UK.
    A UK based assessment of the economic benefits of active transport modes such as cycling. Using the UK Government’s method of evaluating the economic benefits of transport, walking and cycling are demonstrated as having a 20:1 cost benefit ratio.
    View PDF
  • Methodology used in the economic appraisal of local walking and cycling routes
    Sustrans, 2006, Sustrans, Bristol, UK.
    Explains the methodology used in the economic appraisal of local walking and cycling routes, Sustrans, Bristol, UK.
    View PDF
  • Collection of Cycle Concepts
    Danish Roads Directorate, 2000, Government of Denmark, Copenhagen.
    The Collection of Cycle Concepts is a comprehensive Danish publication on cycling. It offers a wide ranging, yet detailed analysis and discussion on promotion, urban planning, facility design, signage and parking. Although some of it is specific to Denmark, much of the content is internationally relevant.
    View PDF

 

Cost Benefit Analysis

Everything has a 'cost' whether it is economic, environmental or social.  The 'triple bottom line' has emerged as the way to analyse the true costs and benefits of all actions, but to do this type of analysis we require a monetary value to be placed on social and environmental factors.  The following are journal articles on the cost benefit of cycling (available for a fee) from Science Direct Visit Site :

  • Sælensminde, K., 2004, Cost-benefit analyses of walking and cycling track networks taking into account insecurity, health effects and external costs of motorized traffic, Transportation Research Part A: Policy and Practice, Volume 38, Issue 8, October 2004, p.593-606
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  • Elvik, R., 2000. Which are the relevant costs and benefits of road safety measures designed for pedestrians and cyclists? Accident Analysis and Prevention, Volume 32, Issue 1, Jan 2000, pp. 37-45
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  • Potter, S. and Parkhurst, G., 2003, Taxation futures for sustainable mobility, University of the West of England.
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  • The Cost Benefit Analysis of Cycling, TemaNord, Nordic Council of Ministers, Copenhagen, 2005.
    View PDF
  • World Health Organisation - Regional Office for Europe
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    This project looks at quantifying the health effects of walking and cycling.
  • Science of Cycling: Human Power
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    The bicycle is a tremendously efficient means of transportation. In fact cycling is more efficient than any other method of travel--including walking!  The one billion bicycles in the world are a testament to its effectiveness. The engine for this efficient mode of transport is the human body. Because bodies are fueled by food, diet plays an important role in how the body performs. Different muscle groups and types provide the power. Genetic inheritance, intensive training, and a competitive drive help top athletes push the boundaries of endurance and speed on the bicycle.

 

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