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Swiss Journal of Economics and Statistics

, Volume 150, Issue 4, pp 297–329 | Cite as

Valuing Public Investments to Support Bicycling

  • Thomas Götschi
  • Beat Hintermann
Open Access
Article

Summary

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.

JEL-Classification

H43 H76 Q51 R41 R42 

Keywords

Cost-benefit analysis health impact assessment bicycle valuation internal cost health benefit VSL 

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Copyright information

© Swiss Society of Economics and Statistics 2014

Authors and Affiliations

  1. 1.Institute of Social and Preventive Medicine, Physical Activity and Health UnitUniversity of ZurichZurichSwitzerland
  2. 2.Faculty of Business and EconomicsUniversity of BaselBaselSwitzerland

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