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Valuing Public Investments to Support Bicycling

Author

Listed:
  • Thomas Götschi
  • Beat Hintermann
Abstract
We develop a framework for assessing the net benefits of investments to promote bicycling, which explicitly accounts for internal costs of bicycling. We apply our model to eight Swiss cities using data from the Swiss national travel survey and find that increasing the level of bicycling by reducing internal costs leads to inframarginal benefits that exceed the net benefits from the additional bicycling. We further find that Swiss cyclists only partially internalize health benefits, which affects the benefits from infrastructure investments but also implies that there is scope for "soft" measures that would inform users about health benefits of bicycling.

Suggested Citation

  • Thomas Götschi & Beat Hintermann, 2014. "Valuing Public Investments to Support Bicycling," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 150(IV), pages 297-329, December.
    • Handle: RePEc:ses:arsjes:2014-iv-2
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cost-benefit analysis; health impact assessment; bicycle; valuation; internal cost; health benefit; VSL;
    All these keywords.

    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

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