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The value of time and external benefits in bicycle appraisal

Author

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  • Börjesson, Maria

    (KTH, Royal Institute of Technology)

  • Eliasson, Jonas

    () (KTH, Royal Institute of Technology)

Abstract

We estimate the value of time savings, different cycling environments and additional benefits in cost-benefit analysis of cycling investments. Cyclists’ value of travel time savings turns out to be high, considerably higher than the value of time savings on alternative modes. Cyclists also value other improvements highly, such as separated bicycle lanes. As to additional benefits of cycling improvements in the form of health and reduced car traffic, our results do not support the notion that these will be a significant part in a cost-benefit analysis. Bicyclists seem to take health largely into account when making their travel choices, implying that it would be double-counting to add total health benefits to the analysis once the consumer surplus has been correctly calculated. As to reductions in car traffic, our results indicate that the cross-elasticity between car and cycle is low, and hence benefits from traffic reductions will be small. However, the valuations of improved cycling speeds and comfort are so high that it seems likely that improvements for cyclists are cost-effective compared to many other types of investments, without having to invoke second-order, indirect effects. In other words, our results suggest that bicycle should be viewed as a competitive mode of travel and not primarily as a means to achieve improved health or reduced car traffic.

Suggested Citation

  • Börjesson, Maria & Eliasson, Jonas, 2011. "The value of time and external benefits in bicycle appraisal," Working papers in Transport Economics 2011:22, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
  • Handle: RePEc:hhs:ctswps:2011_022
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    References listed on IDEAS

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    1. The value of time and external benefits in bicycle appraisal
      by CostBenefit in Environmental Valuation & Cost-Benefit News on 2012-01-01 21:45:00

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    Cited by:

    1. Chaloupka, Christine & Kölbl, Robert & Loibl, Wolfgang & Molitor, Romain & Nentwich, Michael & Peer, Stefanie & Risser, Ralf & Sammer, Gerd & Schützhofer, Bettina & Seibt, Claus, 2015. "Nachhaltige Mobilität aus sozioökonomischer Perspektive – Diskussionspapier der Arbeitsgruppe "Sozioökonomische Aspekte" der ÖAW-Kommission "Nachhaltige Mobilität" (ITA-manu," ITA manu:scripts 15_02, Institute of Technology Assessment (ITA).
    2. Damant-Sirois, Gabriel & El-Geneidy, Ahmed M., 2015. "Who cycles more? Determining cycling frequency through a segmentation approach in Montreal, Canada," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 113-125.
    3. Björklund, Gunilla & Mortazavi , Reza, 2013. "Influences of infrastructure and attitudes to health on value of travel time savings in bicycle journeys," Working papers in Transport Economics 2013:35, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    4. Gernot Sieg, 2016. "Costs and benefits of a bicycle helmet law for Germany," Transportation, Springer, vol. 43(5), pages 935-949, September.
    5. Lanzendorf, Martin & Busch-Geertsema, Annika, 2014. "The cycling boom in large German cities—Empirical evidence for successful cycling campaigns," Transport Policy, Elsevier, vol. 36(C), pages 26-33.
    6. Börjesson, Maria & Fung, Chau Man & Proost, Stef, 2017. "Optimal prices and frequencies for buses in Stockholm," Economics of Transportation, Elsevier, vol. 9(C), pages 20-36.
    7. Cheng, Yung-Hsiang & Liu, Kuo-Chu, 2012. "Evaluating bicycle-transit users’ perceptions of intermodal inconvenience," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1690-1706.
    8. Gössling, Stefan & Choi, Andy S., 2015. "Transport transitions in Copenhagen: Comparing the cost of cars and bicycles," Ecological Economics, Elsevier, vol. 113(C), pages 106-113.
    9. van Wee, Bert & Börjesson, Maria, 2015. "How to make CBA more suitable for evaluating cycling policies," Transport Policy, Elsevier, vol. 44(C), pages 117-124.
    10. repec:gam:jsusta:v:10:y:2018:i:1:p:268-:d:127932 is not listed on IDEAS
    11. Björklund, Gunilla & Isacsson, Gunnar, 2013. "Forecasting the impact of infrastructure on Swedish commuters’ cycling behaviour," Working papers in Transport Economics 2013:36, CTS - Centre for Transport Studies Stockholm (KTH and VTI).

    More about this item

    Keywords

    Cost benefit analysis; Value of time; Bicycle;

    JEL classification:

    • 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
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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