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Bike-friendly cities: an opportunity for local businesses? Evidence from the city of Paris

Author

Listed:
  • Federica Daniele
  • Mariona Segu
  • David Bounie
  • Youssouf Camara

    (Université de Cergy-Pontoise, THEMA)

Abstract

Cities are increasingly interested in developing cycling infrastructure. Yet, little is known about the (potentially heterogeneous) economic impact of such investments. We evaluate the economic impact of a large-scale cycling infrastructure investment in Paris, the Plan V´elo. Using geolocated data covering nearly the universe of French card transactions we estimate a positive and statistically significant elasticity of local revenues to bike market access. We find a larger elasticity in areas with smaller and younger establishments. The project increased the non-tradables consumption share of central/less densely populated neighborhoods at the disadvantage of peripheral/more densely populated ones.

Suggested Citation

  • Federica Daniele & Mariona Segu & David Bounie & Youssouf Camara, 2022. "Bike-friendly cities: an opportunity for local businesses? Evidence from the city of Paris," THEMA Working Papers 2022-09, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    • Handle: RePEc:ema:worpap:2022-09
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    More about this item

    Keywords

    cities; cycling; infrastructure investment; local economic activity;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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