Mar
04
2009
The (Municipal) Economics of Cycling
0 comments at 5:12 pm posted by Chris C
Every so often, in the “Reader Comments” sections of news articles and blogs, someone suggests that cyclists should have to pay for cycling infrastructure themselves.
We all pay property taxes to support car infrastructure, regardless of how much or how little we use it. The cost to fully fund the proposed Bicycle Transportation Plan is $100 million over 10 years. It will build 489 km of pleasant bike routes that fully connect the entire city. Connector routes within neighbourhoods will be suitable for anyone (from age 10 up) to ride on comfortably and safely, and a City-wide system will provide direct corridors for travel. At that rate of spending, it would take a quarter centery to build the 23rd Avenue interchange, which is approximately 2 km.
But, you say, car drivers pay a gas tax!
| If gas taxes paid in full for roads, you’d be paying 58¢/L (plus GST) in taxes alone. And that’s assuming that such high taxes wouldn’t impact fuel consumption. |
|---|
Well, yes, car drivers pay taxes on gasoline. (Let’s not forget that many car drivers also ride bikes and appreciate safe and effective cycling infrastructure.)
The Alberta government collects a provincial fuel tax (9 cents/litre), and then returns 5¢/L to municipalities. The rest funds provincial infrastructure. The federal government collects a 10¢/L fuel tax, which comes to Alberta via the Gas Tax Fund (GTF; $476.9 million over 5 years, about $95M/year) and is earmarked for environmentally sustainable infrastructure. The provincial government is responsible for distributing the money to municipalities: all of the province has to share that $95M. And of the money that the city gets and puts into transportation: the money is going to transit, not roads.
So that leaves the 5¢/L fuel tax to fund roads.
Looking at the proposed 2009 Capital and Operating Budgets for the City of Edmonton, we can calculate the following numbers:
| Total roads budget (excluding sidewalks, curb ramps, multiuse trails, and bike paths), 1-year mean (over 2009-2011): | $556,910,000 |
| Total fuel tax funding allocation for roads, 1-year mean: | $56,408,000 |
Which leaves $500.5 million unpaid. If gas taxes paid in full for roads, you’d be paying 58 ¢/L (plus GST) in taxes alone. And that’s assuming that such high taxes wouldn’t impact fuel consumption. If people reduce their usage due to high gas prices, then the taxes would have to be even higher.
Now let’s move into a more speculative realm, and enumerate some assumptions. Suppose that:
- The bike plan is fully funded and built, at a cost of $10M per year for 10 years
- 2% of trips are made by bike instead of by car once the plan is complete (we’re currently at 1%)
- Many of our current road costs stem from being at full capacity (overpasses, widening roads, congestion) And the big one,
- That a 1% reduction in car usage will result in a 1% savings in road expenditures (excluding bicycle-related costs)
Direct savings on road expenditures: $5.5M per year.
Bicycle and car infrastructure spending are a lot more closely tied than those assumptions allow: a road rehabilitation project can easily include improvements to bike paths and sidewalks at the same time, saving everyone money. So the $5.5M number isn’t actually so clear, but it is tantalizing to consider.
There are clearer savings to be seen, though. The cost per kilometre of bicycle infrastructure is laughably cheap compared to automobile roads. Bicycles are quiet, good for the environment, and good for health (even more savings: cycling reduces cancer rates). Having people walking and biking in neighbourhoods builds a stronger community, which makes the place safer, and improves quality of life. More cyclists on the road mean cyclists are safer (cities with more cyclists have dramatically lower accident rates, likely because everyone’s more aware of each other).
More cyclists mean good things for drivers, too: less congestion, more parking space, and a happier commute.
Economically, a bicycle-friendly city draws cycle tourists. Bike tourists tend to stay longer and spend more than other tourists, leaving their marks in the local economy. (For entertainment, check out David Byrne’s journal entry about his spin around town.)
Finally, the infrastructure proposed to be constructed in the Bike Plan will be very high capacity. Let’s make a couple more assumptions:
- Bicycle mode share increases to 20% (and car mode share decreases to 57%), thanks to cycle-friendly infrastructure, and the environmental, health, and cost benefits.
- The bike plan can support this load without significant additional unplanned expenditure.
- Ignore the fact that people on foot, rollerblades, skateboards, and in wheelchairs can all also benefit from multi-use trails (and share in the modal cost distribution)
| Annual cost per percentage point mode share: | |
| Car | $556,910,000 / 57 = $9,770,000 |
| Cycling | $10,000,000 / 20 = $500,000 (5% the cost of car infrastructure) |
At 2.5 million trips per day, 20% being cycle trips, the cost per trip for a cyclist would be about 5 cents. For a car, given 57% mode share? $1.07.
Portland had a 146% increase in cycling mode share over 10 years, and now hovers near a 10% cycling mode share, thanks to a focused investment in bicycle infrastructure. Copenhagen, that beacon of hope, is at 36%. Montreal, which can be as cold as Edmonton and is certainly much wetter and snowier, is around 2-3% (and rest assured that they bike in style).
We can do it. And we can save money doing it.
Next entry: Photos from the North American Handmade Bicycle Show (NAHBS)
Previous entry: Bicycle Mechanic Course
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Tuesday, September 7, 2010
7pm-8pm
Cycling in Edmonton info session
EBC will be at the Lois Hole Library to talk about all thing related to cycling in Edmonton for this one hour session
Tuesday September 7, Saturday September 11, Tuesday September 14, and Saturday September 18 (all four days)
Tuesdays 7:00 to 10:00 PM, Saturdays 9:00 AM to 4:00 PM
CAN-BIKE 2 Course in September
EBC is offering a Canadian Cycling Association CAN-BIKE 2 course beginning September 11. CAN-BIKE 2 is an 18 hour, on-road cycling course.
Thursday, September 9, 2010 - Friday September 10, 2010
Noon-4pm
U of A Welcome Week Bike Checks
EBC and the Environmental Coordination Office of Students (ECOS) are doing free bike checks and recruiting volunteers. Stop by to get a quick fix and some info!
Saturday, September 11, 2010
1pm-3pm
Basic Bike Maintenance at Lois Hole Library
EBC will be at the Lois Hole Library for this very popular workshop. Maximum of 20 participants.
Sunday, September 12, 2010
Noon-5:30pm
Earth General Store’s 19th B’Earth day
Now that EGS has the room, we are going to have a celebration in the parking lot. Free minor bicycle repairs by EBC, burgers and hot dogs by Vegans & Vegetarians of Alberta, and maybe a few surprises! Enter for a prize draw to win a solar panel, iTouch, rain barrels, and possibly some other surprises!
Sunday, September 12, 2010
9am-8pm
Tour de Perogy 2010
Ride with us to the Ukrainian Heritage Village for their Harvest Food Festival! It’s a leisurely, social ride with delicious food.
Tuesday, September 14, 2010
5pm food; 8pm movie
Car-less Ride-in Movie at Grant MacEwan
Ride your bike in, get a quick tune up curtesy of EBC, bring your blanket or find someone to share one with you, and enjoy some hot chocolate, popcorn, and a movie.
Saturday, September 18, 2010
8pm
Krank - A - Thon
Krank-A-Thon is a unique opportunity for cyclists and non-cyclists to saddle up for a challenging and fun YMCA charity ride.
Wednesday, September 22, 2010
World Car Free Day
Every September 22, people from around the world get together in the streets, intersections, and neighbourhood blocks to remind the world that we don’t have to accept our car-dominated society.
Saturday, September 25, 2010
10am-3pm
Ethnic Grocery Tour
Join us as we tour through downtown Edmonton’s ethnic side: we’ll visit the Italian Centre, a tofu factory, a Portuguese bakery, a South American grocery store, an African grocery store, a volunteer-run community cafe, and other gems of the area! All within 10 blocks of each other.
Sunday, September 26, 2010
10am-4pm
Velocity Cycle’s Interclub “Harvest Ride”
The ride is open to everyone from club racers to recreational riders. The routes will start in Ardrossan and loop through beautiful Strathcona County.
Tuesday, September 28, 2010
11am-3pm
Green Consumer Day
The Office of Sustainability at the University of Alberta is profiling local, sustainable businesses like EBC! Students, staff and faculty can learn more about the sustainable products and services available in Edmonton.
Saturday, October 2, 2010
9am-4pm
CANBIKE Instructor course
EBC is offering a Canadian Cycling Association CAN-BIKE Instructor (one day session). This course is for cyclists who have completed CANBIKE 2 and wish to become a certified instructor.
Sunday, October 3, 2010
1pm-3pm
EBC Annual General Meeting 2010
The 2010 Annual General Meeting (AGM) of the Edmonton Bicycle Commuters’ Society (EBC) will take place on October 3, 2010 from 1pm-3pm at Parkallen Community League Hall (11104 65 Ave). Door prizes provided by MEC and EBC will be awarded. Food and drink will be served.
If you’d like to be involved in setting the future direction of EBC, whether as a volunteer, non-board committee member, or board member, or just want to hear what’s going on with the organization and meet some of its volunteers, please attend this AGM.
Tuesday, December 28, 2010 - Wednesday, December 29, 2010
EBC’s Money Maker at Baccarat Casino
Help EBC raise funds to pay our rent and electricity! The work is really easy, plus EBC will buy you a meal for each shift worked. Volunteers are needed for cashiers, chip runners, bankers, and count room.
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| Cloudy | Observed at: Edmonton City Centre Airport Date: 10:00 AM MDT Thursday 9 September 2010 | |||||
| Today | High: 14°C Pop: 30% Chance of showers |
Fri | High: 16°C Low: 9°C Overcast |

