Cycling Infrastructure Offers Substantial ROI, New Zealand Study Reveals
A recent study conducted by the New Zealand Transport Agency (NZTA) has provided compelling evidence of the substantial return on investment (ROI) associated with investments in cycling infrastructure. The study, titled “Bikeways: A Cost-Benefit Analysis,” found that for every dollar invested in cycling infrastructure, there is a net economic benefit of between $1.40 and $4.20.
Benefits of Cycling Infrastructure
The study’s findings underscore the far-reaching benefits of cycling infrastructure, encompassing not only economic returns but also positive impacts on public health, environmental sustainability, and property values including:
- Reduced congestion and travel times for motorists: By providing more viable alternatives to car travel, cycling infrastructure can help to reduce traffic congestion and improve travel times for motorists.
- Improved health outcomes: Cycling is a low-impact form of exercise that can significantly reduce the risk of chronic diseases such as heart disease, stroke, and obesity.
- Reduced air pollution: Cycling produces zero emissions, contributing to cleaner air and improved air quality.
- Increased property values: Studies have shown that proximity to cycling infrastructure can increase property values.
- Reduced healthcare costs: The health benefits of cycling can lead to lower healthcare costs for individuals and the healthcare system as a whole.
The NZTA study found that the highest ROI was achieved in urban areas, where the benefits of reduced congestion and improved air quality were most pronounced. However, the study also found that cycling infrastructure investments can be profitable in rural areas as well, due to the reduced healthcare costs associated with cycling.
The findings of the NZTA study have significant implications for transportation policy in New Zealand and around the world. By investing in cycling infrastructure, governments can reap substantial economic, environmental, and health benefits.
In addition to the NZTA study, a growing body of research is demonstrating the positive economic impacts of cycling infrastructure. A 2017 study by the European Cyclists’ Federation found that cycling investments in Europe generate an average ROI of €5.30 for every euro invested.
As governments grapple with the challenges of climate change, traffic congestion, and public health, cycling infrastructure is emerging as a cost-effective and sustainable solution. With the right investments, cycling can become an integral part of the transportation network, providing a cleaner, healthier, and more efficient way to get around.
In addition to the direct economic benefits, cycling infrastructure can also play a role in attracting businesses and residents to urban areas. Studies have shown that businesses are more likely to locate in areas with good cycling infrastructure, and residents are willing to pay more for homes in these areas.
As cycling infrastructure continues to expand, the economic and environmental benefits are likely to grow even larger. By investing in cycling now, governments can reap the rewards for years to come.
