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ECF gratefully acknowledges financial 
support from the European Commission. 
The Economic Impact of 
Cycling Investments ...
European Cyclists’ Federation 
• Over 70 members in 40 
countries 
• Velo-city conference 
• Global networks: 
Scientists ...
Job creation: numbers at national level 
• Germany: 
– ZIV/VSF: 4,000 employees in bike + parts 
manufacturing; 30,000 in ...
Job creation: numbers at national level 
• United Kingdom: 
– Gross Cycle Product Report: 900 employees 
in manufacturing;...
Job creation: numbers at European 
level 
• WHO Regional Office for Europe, 2014: ca. 
77,000 additional jobs in urban are...
Cost-Benefit Analysis: „Traditional“ 
Advocacy 
6
Cost-Benefit Analysis: HEAT tool 
(WHO) 
• estimating the value of reduced mortality 
resulting from specified amounts of ...
Cost-Benefit Analysis: HEAT tool 
(WHO) 
• Assumptions: 
– Regular commuter cycling: default value100 
minutes per week (a...
Cost-Benefit Analysis: HEAT tool 
(WHO) 
• Example: 
– Local cycling infrastructure investment: 
Cost €100,000 
– Cyclists...
Cost-Benefit Analysis: HEAT tool 
(WHO) 
• Examples for use: 
– France: Report on cycling 
reimbursement (11/2013) 
– Aust...
Cost-Benefit Calculator for Cycling 
Investments (Fietsberaad/Decisio, NL) 
• English explanation: 
http://herberttiemens....
Cost-Benefit Calculator for Cycling 
Investments (Fietsberaad/Decisio, NL) 
• For indivual projects 
• Including a range o...
Cost-Benefit Calculator for Cycling 
Investments 
• Example 1: Cycling kilometer compared to car and 
bus kilometers (dens...
Cost-Benefit Calculator for Cycling 
Investments 
• Example 2: Cycle bridge (medium 
scenario) 
• Costs: 
– Investment: € ...
Cost-Benefit Calculator for Cycling 
Investments 
• Example 2: Cycle bridge (medium scenario) 
• Indirect effects: 
– Work...
Transport Emissions Evaluation 
Model (TEEMP) Tool 
• Evaluating the impact of transport projects on 
emissions of CO2 and...
Thank you for your attention ! 
For more information 
h.haubold@ecf.com @HolgerECF 
www.ecf.com @EuCyclistsFed
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Holger Haubold: The Economic Impact of Cycling Investments: Providing rational arguments for policy-makers

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Holger Haubold works at European Cyclists' Federation in Brussels. Presented at Veloforum Conference in Lviv, Ukraine in October, 2014.

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Holger Haubold: The Economic Impact of Cycling Investments: Providing rational arguments for policy-makers

  1. 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. 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 2
  3. 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.“ 3 benefits for local economies
  4. 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." 4
  5. 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) 5
  6. 6. Cost-Benefit Analysis: „Traditional“ Advocacy 6
  7. 7. Cost-Benefit Analysis: HEAT tool (WHO) • estimating the value of reduced mortality resulting from specified amounts of cycling • www.heatwalkingcycling.org 7
  8. 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) 8
  9. 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 9
  10. 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 10
  11. 11. Cost-Benefit Calculator for Cycling Investments (Fietsberaad/Decisio, NL) • English explanation: http://herberttiemens.wordpress.com/2014/03/04/ online-cost-benefit-calculator/ 11
  12. 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 12 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. 13. Cost-Benefit Calculator for Cycling Investments • Example 1: Cycling kilometer compared to car and bus kilometers (densely populated urban area) 13 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. 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 14
  15. 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 15
  16. 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 16
  17. 17. Thank you for your attention ! For more information h.haubold@ecf.com @HolgerECF www.ecf.com @EuCyclistsFed

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