Myth #2: Cycling infrastructure is too expensive for local and regional budgets to invest in.

Reality: Cycling is a no-regret investment, providing returns for the economy and society. 

Cycling is undoubtedly a financially efficient and cost-saving means of transport for private citizens and for the public. It also generates substantial economic growth for businesses and a society’s economy. A study on the economic benefits of installing cycling infrastructure in key city arteries in Helsinki found that every euro invested in high-quality cycling infrastructure yields an eight euro benefit for society.

[1] City of Helsinki. (2014). Pyöräilyn hyödyt ja kustannukset Helsingissä [Costs and benefits of cycling in Helsinki]. Accessible at: https://www.hel.fi/hel2/ksv/julkaisut/los_2014-5.pdf

 Using the Health Economic Assessment Tool for walking and cycling,

WHO. (n.d.). Health economic assessment tool (HEAT) for walking and cycling. https://www.who.int/europe/tools-and-toolkits/health-economic-assessment-tool-for-walking-and-cycling

the study found cycling infrastructure to be cost-effective, but it also reduced travel times for citizens and created improvements across a range of societal health metrics. A socioeconomic analysis in Demark also found similar positive results. The analysis showed that society generates seven Danish kroner for every kilometre invested in regional cycling infrastructure. With a rate of return of 23%, the Danish cycle superhighway network in the capital region is one of the country’s most profitable infrastructure projects, and most of the benefits accrue to the state.

Rich, J., Fjendbo Jensen, A., Pilegaard, N., & Hallberg, M. (2021). The cost-benefit of bicycle infrastructure with e-bikes and cycle superhighways. Case Studies on Transport Policy, 9, 2:608-615. https://doi.org/10.1016/j.cstp.2021.02.015

And in Oslo, a recent evaluation of the city’s cycling strategy shows a net utility value of NOK 3.9 billion, in large part due to the increase in physical activity and safety for road users.

City of Oslo. (2024). Oslos sykkelsatsing har bidratt til mer og tryggere sykling [Oslo's cycling initiative has contributed to more and safer cycling]. City Council's Department for Environment and Transport. Accessible at: https://aktuelt.oslo.kommune.no/oslos-sykkelsatsing-har-bidratt-til-mer-og-tryggere-sykling

 

Several countries outside the Nordic Region also provide examples of positive returns on cycling investment. A 2022 cost-benefit analysis of cycling in Belgium revealed the net benefits of riding a bike are equal to 98 eurocent per kilometre; riding an e-bike yields 22 eurocent per kilometre.

Transport and Mobility Leuven. (2024). The cycling economy in Belgium. Accessible at: https://www.tmleuven.be/en/project/The-cycling-economy-in-Belgium#:~:text=In%202022%2C%20the%20cycling%20economy,in%20general%20in%20recent%20years

  By contrast, a trip by car leads to a social cost of €1.02 per kilometre. Put differently, if 100,000 people commute to work by bike over a 5-km distance, they generate a total benefit of €196 million per year, as opposed to generating a cost of €203 million per year if they commute the same distance by car. Of that cost, €89 million is paid by car users, but €114 million is transferred to the rest of the society. The main economic benefits are attributed to positive health gains from regular cycling. According to ECF’s estimates, cycling produces accumulated health benefits of around €73 billion per year.

Haubold, H. (2022). Celebrating World Health Day: What are the health benefits of cycling? European Cyclists’ Federation. Accessible at: https://www.ecf.com/en/news/celebrating-world-health-day-what-are-the-health-benefits-of-cycling/

 

To ensure financial investments are made, cities and regions need to present the clear benefits of cycling by collecting and analysing qualitative and quantitative data. However, traffic and cycling planners in the Nordic Region lament the quality of GIS data, complications with travel surveys, lack of available technology for collecting data, and complications around privacy, standardisation, data categorisation, and resources.

Invest in high-quality cycling infra­structure to generate economic and health benefits.
Investing in cycling is an investment in society. The widespread benefits are well-researched and documented. According to ECF’s annual analysis of national cycling strategies in Europe, central government investments in cycling are less than €20 per capita in Norway, and less than €10 per capita in Denmark, Finland, Sweden, and Iceland.

Küster, F. & Schusta, B. (2023). The state of national cycling strategies in Europe. European Cyclists’ Federation. Accessible at: https://www.ecf.com/media/resources/2023/The-State-of-National-Cycling-Strategies-2023_ECF.pdf

In contrast, the Flanders region in Belgium invests nearly €50 per capita in cycling. These facts do not tell the full story of cycling strategy and finance, but they show that cycling is not sufficiently prioritised on a national level, thus placing most of the burden on local administrations, despite the fact that economic returns also benefit the national level through health care savings. Governments can significantly cut health costs and increase economic gains by building networks of high-quality cycling infrastructure in addition to other incentives that encourage residents to replace cars with bicycles.

Invest in measures to collect cycling data.
Collecting quality cycling data on critical indicators can provide important evidence for making a funding case. Such efforts can also inform planners’ decision-making around design, infrastructure, and maintenance. Data is at the heart of cycling promotion. In the Nordics, many cities and regions are collecting data on a wide range of indicators, including number of cyclists, travel times, modal share, perceived and actual traffic safety, number of trips and locations using public bike share systems, bicycle parking, perceptions and satisfaction of cyclists, cycling demographics, cycling speeds, overall travel habits. 

•  The City of Copenhagen works with three key avenues to secure stable funding: 1) Internal long-term planning with allocated budget, 2) budgeting from other administrative departments linked to cycling efforts, and 3) external funding from state and private actors. In combination, these varied revenue streams ensure that cycling maintains a priority in the city.

City of Copenhagen. (2022). Cykelregnskab 2022 [Bicycle Account 2022]. (p.12). Accessible at: https://kk.sites.itera.dk/apps/kk_pub2/index.asp?mode=detalje&id=2419