Plenary speak from Velo-City 2011 in Seville.

1. THE EFFICIENCY OF CYCLING
INVESTMENTS
Eva Willumsen

2. PUBLIC FUNDS ARE SPARSE
• xx

3. WE SHOULD INVEST EFFICIENTLY IN OUR
TRANSPORT SYSTEM

4. HOW DO WE MEASURE ECONOMIC
EFFICIENCY
• Cost-benefit analysis is the key way to measure the economic
efficiency of investments or measures
• What is cost-benefit analysis?
– A consistent and systematic quantitative comparison of the effects of an
investment or a measure
• What is the purpose of cost-benefit analysis?
– To summarise the advantages and disadvantages of an investment or
measure as the foundation for a political decision
– If advantages (benefits) outweigh the disadvantages (costs) it is an
efficient investment or measure

5. WHY DO WE INVEST IN TRANSPORT?
• Originally to get from A to B
• … then to get from A to B fast
• … last 2-3 decades attention has been given to avoiding the
negative externalities of transport
• The later years
… high congestion implies optimisation of the use of the
infrastructure
… increase the urban space and recreational value
… for cycling projects also to gain health benefits
• We want to assign an economic value to each of these effects

6. WHAT CAN WE MONETARISE?
 
 
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Source: www.kk.dk/sitecore/content/Subsites/CityOfCopenhagen/SubsiteFrontpage/
CitizenInformation/CityAndTraffic/CityOfCyclists/socioeconomicbenefits.aspx

7. COSTS AND BENEFITS
80
The car is faster and more safe…
60 … but the bicycle is cheaper, "clean" and healthy
40
20
Euro-Cent per km
0
Bicycle (16 km/h)
Time costs Vehicle costs Health effects Accidents
Pollution, noise, congestion
Total
Car (50 km/h)
-20
-40
-60
In total the bicycle has by far the lowest costs!
-80
-100
Source: www.kk.dk/sitecore/content/Subsites/CityOfCopenhagen/SubsiteFrontpage/
CitizenInformation/CityAndTraffic/CityOfCyclists/socioeconomicbenefits.aspx

8. COST-BENEFIT EXAMPLE:
THE BRYGGE BRIDGE IN COPENHAGEN
Knippelsbro
Langebro
Bryggebroen
Sjællandsbroen

9. COST-BENEFIT EXAMPLE:
THE BRYGGE BRIDGE IN COPENHAGEN
• Investment: 7,5 MEUR
1.000 1.000
900 900
800 800
Tax distortion
Skatteforvridning 700 700
Externalities
Eksternaliteter
Branding/tourism
Branding/turisme
600 600 Generated traffic
Nye/overflyttede
Morbidity
Sundhed
500
Accidents
Uheld
500
Mortality
Forlænget levetid Vehicle operating costs
Kørselsomkostninger
Time
Tid
Operating costs
Driftsomkostninger 400 400
Investment costs
Anlægsomkostninger 300 300
200 200
100 100
0 0
Costs
Omkostninger Benefits
Gevinster
• Internal rate of return 7,6%
Source: www.kk.dk/sitecore/content/Subsites/CityOfCopenhagen/SubsiteFrontpage/
CitizenInformation/CityAndTraffic/CityOfCyclists/socioeconomicbenefits.aspx

10. ECONOMICS IN INFRASTRUCTURE PROJECTS
ECONOMIC RATE OF RETURN
The Brygge Cyclist Bridge A Femarn Belt Bridge
7,6% 6,8%
New railway Copenhagen-Ringsted Rebuilding an intersection
5,8% 33%

11. PERSPECTIVE
• Bicycle projects
… can and should be assessed in the same way as other
transport projects
… can yield economic returns on investment that are
comparable with other modes of transport
… have an important contribution to public health which
should be included in the cost-benefit analyses
… but the methodological foundation for assessing cycling
should be developed further as we are only in the early stages

12. Eva Willumsen

13. REFERENCES
– www.cycling-embassy.dk/2010/06/10/economic-evaluation-of-cycle-projects/
– www.kk.dk/sitecore/content/Subsites/CityOfCopenhagen/SubsiteFrontpage/CitizenInformation/City
AndTraffic/CityOfCyclists/socioeconomicbenefits.aspx
– www.cowi.dk/menu/projects/samfund/velfaerdsoekonomiogservice/Pages/Samfundsøkonomiskean
alyserafforbedredeforholdforcykeltrafik.aspx