Holger Haubold: The Economic Impact of Cycling Investments: Providing rational arguments for policy-makers
1. ECF gratefully acknowledges financial
support from the European Commission.
The Economic Impact of
Cycling Investments
Providing rational arguments for policy-makers
Holger Haubold
Veloforum L’viv, 11 October 2014
2. European Cyclists’ Federation
• Over 70 members in 40
countries
• Velo-city conference
• Global networks:
Scientists for Cycling, Cities for
Cyclists, Cycling Industry Club,
World Cycling Alliance
• 2020: Double cycling in Europe
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3. Job creation: numbers at national level
• Germany:
– ZIV/VSF: 4,000 employees in bike + parts
manufacturing; 30,000 in trade, 7,000 in
infrastructure
– Federal Ministry of the Economy (2009):
186,000 employees in cycle tourism
– Taken up in National Cycling Master Plan:
„The promotion of cycling therefore also
supports growth and employment in small
and medium-sized enterprises.“
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benefits for local
economies
4. Job creation: numbers at national level
• United Kingdom:
– Gross Cycle Product Report: 900 employees
in manufacturing; 20,000 in trade, 2,515 in
infrastructure
– Ian Austin MP, vice-chairman of the all
party parliamentary cycling group:
“This important report shows that
encouraging greater participation in
cycling can bring not only social but
economic benefits for Britain."
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5. Job creation: numbers at European
level
• WHO Regional Office for Europe, 2014: ca.
77,000 additional jobs in urban areas
– only for one major city per country
– rough estimates, using data from Copenhagen for
all cities
– Only wholesale and retail trade + companies
designing and selling bikes
Currently, there is no comprehensive
study on jobs in the cycling sector at
EEuCrFo pperoajne clet:v setludy on job creation in the
European cycling economy (Dec 2014)
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7. Cost-Benefit Analysis: HEAT tool
(WHO)
• estimating the value of reduced mortality
resulting from specified amounts of cycling
• www.heatwalkingcycling.org
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8. Cost-Benefit Analysis: HEAT tool
(WHO)
• Assumptions:
– Regular commuter cycling: default value100
minutes per week (average for the whole
year)
– Relative risk for cyclists: 0.90 ( 10% less
likely to die from any cause than non-cyclists)
– Value of a statistical life: € 3.371 million (EU,
adjustable per country)
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9. Cost-Benefit Analysis: HEAT tool
(WHO)
• Example:
– Local cycling infrastructure investment:
Cost €100,000
– Cyclists before intervention: 5,000
– Cyclists after intervention: 5,500
– 50% genuinely new cyclists (others have switched
from other routes etc.)
– Discount rate for future benefits: 5%
Over 10 years:
Health benefits according to HEAT: € 966,000
Cost-benefit ratio: 1:9.66
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10. Cost-Benefit Analysis: HEAT tool
(WHO)
• Examples for use:
– France: Report on cycling
reimbursement (11/2013)
– Austria: National Cycling Master Plan
recommends to include HEAT in
guidelines for CBA for transport
investments
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11. Cost-Benefit Calculator for Cycling
Investments (Fietsberaad/Decisio, NL)
• English explanation:
http://herberttiemens.wordpress.com/2014/03/04/
online-cost-benefit-calculator/
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12. Cost-Benefit Calculator for Cycling
Investments (Fietsberaad/Decisio, NL)
• For indivual projects
• Including a range of direct/indirect costs/benefits
• Takes also into account externalities (noise, emissions)
Costs Direct Effects Indirect Effects Externalitie
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s
Initial
investment
Travel time reduction
cyclists
Health benefits Emissions
Maintenance Travel time reduction
and reliability car traffic
Productivity (less
job absence)
Noise
Subsidies public
transport
Road Safety
Tax revenues
from fuel taxes
13. Cost-Benefit Calculator for Cycling
Investments
• Example 1: Cycling kilometer compared to car and
bus kilometers (densely populated urban area)
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Cycling replacing car Cycling replacing bus
Network effects
(congestion)
€ 0.330 € 0.000
Work productivity € 0.046 € 0.046
Life expectancy € 0.025 € 0.025
Public budgets
€ -0.030 € 0.387
(taxes/subsidies)
Total indirect effects € 0.041 € 0.458
Emissions € 0.030 € 0.029
Noise € 0.010 € 0.016
Road safety € -0.001 € 0.010
Total externalities € 0.039 € 0.055
Total benefits € 0.411 € 0.513
14. Cost-Benefit Calculator for Cycling
Investments
• Example 2: Cycle bridge (medium
scenario)
• Costs:
– Investment: € 21.5 million
– Maintenance: € 2.5 million
– Total: € 23.9 million
• Direct benefits:
– Travel time gained cyclists: € 29.1 million
– Travel time gained car traffic: € 5.4 million
– Travel time reduction existing cycle traffic: € 1.8
million
– Total: € 36.3 million
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15. Cost-Benefit Calculator for Cycling
Investments
• Example 2: Cycle bridge (medium scenario)
• Indirect effects:
– Work productivity: € -0.8 million
– Life expectancy: € -0.3 million
– Fuel taxes: € -0.3 million
– Subsidies public transport: € 0.7 million
– Total: € -0.7 million
• Externalities:
– Emissions: € 0.4 million
– Noise: € 0.2 million
– Road Safety: € 2.4 million
– Total: € 2.9 million
• Total benefits: € 38.5 million
• Balance: € 14.6 million
• Cost- benefit ratio: 1:1.7
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16. Transport Emissions Evaluation
Model (TEEMP) Tool
• Evaluating the impact of transport projects on
emissions of CO2 and air pollutants (particulate
matter, NOx) (no monetary evalution)
• Cycling: bike share systems, bikeways
• http://cleanairinitiative.org/portal/TEEMPTool
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17. Thank you for your attention !
For more information
h.haubold@ecf.com @HolgerECF
www.ecf.com @EuCyclistsFed