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Modeling the impacts of electric bicycle purchase incentive program designs

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  • Alexander Bigazzi
  • Elmira Berjisian

Abstract

Governments are interested in incentivizing e-bike adoption, due to potential benefits from displacing travel by private automobile. To inform the development of e-bike purchase incentive programs, the objective of this paper is to determine how key elements of program design (particularly rebate amounts and structure) are expected to affect new e-bike purchases. An aggregate demand model is developed and applied to rebate scenarios to examine incentive effectiveness. Results show that rebate programs are expected to be bound by available rebates, not e-bike demand, and additional bike shop revenues exceed rebate costs. At a fixed program budget, fewer, larger rebates yield fewer additional sales, but a larger share of rebates go to low-income and new (marginal) purchasers. Flat and proportional rebate structures yield similar sales, although flat rebates are more income-equitable. Flat rebates are recommended for new e-bike incentive programs, with robust program evaluations to inform future program designs.

Suggested Citation

  • Alexander Bigazzi & Elmira Berjisian, 2021. "Modeling the impacts of electric bicycle purchase incentive program designs," Transportation Planning and Technology, Taylor & Francis Journals, vol. 44(7), pages 679-694, October.
    • Handle: RePEc:taf:transp:v:44:y:2021:i:7:p:679-694
    DOI: 10.1080/03081060.2021.1956806
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    Cited by:

    1. Shilpa Dogra & Nicholas O’Rourke & Michael Jenkins & Daniel Hoornweg, 2021. "Integrated Urban Mobility for Our Health and the Climate: Recommended Approaches from an Interdisciplinary Consortium," Sustainability, MDPI, vol. 13(22), pages 1-12, November.
    2. Nenad Djokic & Nikola Milicevic & Branimir Kalas & Ines Djokic & Vera Mirovic, 2023. "E-Bicycle as a Green and Physically Active Mode of Transport from the Aspect of Students: TPB and Financial Incentives," IJERPH, MDPI, vol. 20(3), pages 1-11, January.
    3. Johnson, Nicholas & Fitch-Polse, Dillon & Handy, Susan, 2023. "Impacts of E-bike Ownership on Travel Behavior: Evidence from three Northern California rebate programs," Institute of Transportation Studies, Working Paper Series qt5kb4b8jx, Institute of Transportation Studies, UC Davis.

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