IDEAS home Printed from https://ideas.repec.org/p/bsl/wpaper/2013-02.html
   My bibliography  Save this paper

Valuation of public investment to support bicycling (FV-09)

Author

Listed:
  • Götschi, Thomas

    () (University of Basel)

  • Hintermann, Beat

    () (University of Basel)

Abstract

In this paper we develop a framework to value public investments with the purpose of increasing bicycling that explicitly accounts internal costs of bicycling, which are typically neglected in current established approaches that value bicycle spending by means of gross health benefits alone, as are inframarginal benefits to existing cyclists. By monetizing internal costs independent of health benefits, we can assess the degree of internalization of private benefits and/or the internalization of external benefits such as environmental improvements due to altruistic preferences by cyclists. Our framework further conceptualizes the complementarity between “hard” (investments in infrastructure) and “soft” measures (informational campaigns) in bicycle policy. Finally, we propose an empirical method for identifying internal costs using a latent variable approach and apply it to eight Swiss cities. Our results imply that Swiss cyclists internalize more than mortality-based benefits. However, because data for some important bicycle mode choice determinants are not available, our results cannot inform policy directly at the current stage. Instead, the contributions of our paper are the development of an economically consistent framework to value public bicycle investments and the identification of crucial data needs for the development of comprehensive assessments informing bicycle policy decisions.

Suggested Citation

  • Götschi, Thomas & Hintermann, Beat, 2013. "Valuation of public investment to support bicycling (FV-09)," Working papers 2013/02, Faculty of Business and Economics - University of Basel.
  • Handle: RePEc:bsl:wpaper:2013/02
    as

    Download full text from publisher

    File URL: https://edoc.unibas.ch/61208/1/20180305172709_5a9d6fddf2ea4.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. John Parkin & Mark Wardman & Matthew Page, 2008. "Estimation of the determinants of bicycle mode share for the journey to work using census data," Transportation, Springer, vol. 35(1), pages 93-109, January.
    2. Jean Tirole & Roland Bénabou, 2006. "Incentives and Prosocial Behavior," American Economic Review, American Economic Association, vol. 96(5), pages 1652-1678, December.
    3. Rietveld, Piet & Daniel, Vanessa, 2004. "Determinants of bicycle use: do municipal policies matter?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(7), pages 531-550, August.
    4. Smith, Bruce H., 1991. "Anxiety as a cost of commuting to work," Journal of Urban Economics, Elsevier, vol. 29(2), pages 260-266, March.
    5. J. Hunt & J. Abraham, 2007. "Influences on bicycle use," Transportation, Springer, vol. 34(4), pages 453-470, July.
    6. Ralph Buehler & John Pucher, 2012. "Cycling to work in 90 large American cities: new evidence on the role of bike paths and lanes," Transportation, Springer, vol. 39(2), pages 409-432, March.
    7. Janice Kirner Providelo & Suely Penha Sanches, 2011. "Roadway and traffic characteristics for bicycling," Transportation, Springer, vol. 38(5), pages 765-777, September.
    8. Xing, Yan & Handy, Susan L. & Mokhtarian, Patricia L., 2010. "Factors Associated with Proportions and Miles of Bicycling for Transportation and Recreation in Six Small U.S. Cities," Institute of Transportation Studies, Working Paper Series qt74n4j1p0, Institute of Transportation Studies, UC Davis.
    9. Wardman, Mark & Tight, Miles & Page, Matthew, 2007. "Factors influencing the propensity to cycle to work," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(4), pages 339-350, May.
    10. Ipek Sener & Naveen Eluru & Chandra Bhat, 2009. "An analysis of bicycle route choice preferences in Texas, US," Transportation, Springer, vol. 36(5), pages 511-539, September.
    11. Vandenbulcke, Grégory & Dujardin, Claire & Thomas, Isabelle & Geus, Bas de & Degraeuwe, Bart & Meeusen, Romain & Panis, Luc Int, 2011. "Cycle commuting in Belgium: Spatial determinants and 're-cycling' strategies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(2), pages 118-137, February.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Cost-benefit analysis; bicycle; valuation; latent variable; MIMIC;

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bsl:wpaper:2013/02. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (WWZ). General contact details of provider: http://edirc.repec.org/data/wwzbsch.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.