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The efficiency of cycling investments
The efficiency of cycling investments
The efficiency of cycling investments
The efficiency of cycling investments
The efficiency of cycling investments
The efficiency of cycling investments
The efficiency of cycling investments
The efficiency of cycling investments
The efficiency of cycling investments
The efficiency of cycling investments
The efficiency of cycling investments
The efficiency of cycling investments
The efficiency of cycling investments
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The efficiency of cycling investments

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Plenary speak from Velo-City 2011 in Seville.

Plenary speak from Velo-City 2011 in Seville.

Published in: Economy & Finance
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  • 1. THE EFFICIENCY OF CYCLING INVESTMENTS Eva Willumsen
  • 2. PUBLIC FUNDS ARE SPARSE• xx
  • 3. WE SHOULD INVEST EFFICIENTLY IN OUR TRANSPORT SYSTEM
  • 4. HOW DO WE MEASURE ECONOMIC EFFICIENCY• Cost-benefit analysis is the key way to measure the economic efficiency of investments or measures• What is cost-benefit analysis? – A consistent and systematic quantitative comparison of the effects of an investment or a measure• What is the purpose of cost-benefit analysis? – To summarise the advantages and disadvantages of an investment or measure as the foundation for a political decision – If advantages (benefits) outweigh the disadvantages (costs) it is an efficient investment or measure
  • 5. WHY DO WE INVEST IN TRANSPORT?• Originally to get from A to B• … then to get from A to B fast• … last 2-3 decades attention has been given to avoiding the negative externalities of transport• The later years … high congestion implies optimisation of the use of the infrastructure … increase the urban space and recreational value … for cycling projects also to gain health benefits• We want to assign an economic value to each of these effects
  • 6. WHAT CAN WE MONETARISE?       Source: www.kk.dk/sitecore/content/Subsites/CityOfCopenhagen/SubsiteFrontpage/ CitizenInformation/CityAndTraffic/CityOfCyclists/socioeconomicbenefits.aspx
  • 7. COSTS AND BENEFITS 80 The car is faster and more safe… 60 … but the bicycle is cheaper, "clean" and healthy 40 20Euro-Cent per km 0 Bicycle (16 km/h) Time costs Vehicle costs Health effects Accidents Pollution, noise, congestion Total Car (50 km/h) -20 -40 -60 In total the bicycle has by far the lowest costs! -80 -100 Source: www.kk.dk/sitecore/content/Subsites/CityOfCopenhagen/SubsiteFrontpage/ CitizenInformation/CityAndTraffic/CityOfCyclists/socioeconomicbenefits.aspx
  • 8. COST-BENEFIT EXAMPLE:THE BRYGGE BRIDGE IN COPENHAGEN Knippelsbro Langebro Bryggebroen Sjællandsbroen
  • 9. COST-BENEFIT EXAMPLE: THE BRYGGE BRIDGE IN COPENHAGEN• Investment: 7,5 MEUR 1.000 1.000 900 900 800 800 Tax distortion Skatteforvridning 700 700 Externalities Eksternaliteter Branding/tourism Branding/turisme 600 600 Generated traffic Nye/overflyttede Morbidity Sundhed 500 Accidents Uheld 500 Mortality Forlænget levetid Vehicle operating costs Kørselsomkostninger Time Tid Operating costs Driftsomkostninger 400 400 Investment costs Anlægsomkostninger 300 300 200 200 100 100 0 0 Costs Omkostninger Benefits Gevinster• Internal rate of return 7,6% Source: www.kk.dk/sitecore/content/Subsites/CityOfCopenhagen/SubsiteFrontpage/ CitizenInformation/CityAndTraffic/CityOfCyclists/socioeconomicbenefits.aspx
  • 10. ECONOMICS IN INFRASTRUCTURE PROJECTS ECONOMIC RATE OF RETURN The Brygge Cyclist Bridge A Femarn Belt Bridge 7,6% 6,8%New railway Copenhagen-Ringsted Rebuilding an intersection 5,8% 33%
  • 11. PERSPECTIVE• Bicycle projects … can and should be assessed in the same way as other transport projects … can yield economic returns on investment that are comparable with other modes of transport … have an important contribution to public health which should be included in the cost-benefit analyses … but the methodological foundation for assessing cycling should be developed further as we are only in the early stages
  • 12. Eva Willumsen
  • 13. REFERENCES– www.cycling-embassy.dk/2010/06/10/economic-evaluation-of-cycle-projects/– www.kk.dk/sitecore/content/Subsites/CityOfCopenhagen/SubsiteFrontpage/CitizenInformation/City AndTraffic/CityOfCyclists/socioeconomicbenefits.aspx– www.cowi.dk/menu/projects/samfund/velfaerdsoekonomiogservice/Pages/Samfundsøkonomiskean alyserafforbedredeforholdforcykeltrafik.aspx

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