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C-1 APPENDIX C LITERATURE RESEARCHING BICYCLE BENEFITS Conventional evaluation techniques suggest that any bicycle facil- ing of the impact bicycling has on Colorado's economy in the form ities should be considered in the same manner as other transportation of production, sales, jobs and income and tax revenue (70). Extrap- facilities (e.g., roadways, light rail, HOV lanes) or, for that matter, olating data in concert with household information, this research any major public capital investment (e.g., wastewater treatment plant, assessed the impact of bicycling in the form of expenditures, produc- sports stadium). Doing so subjects bicycle facilities to the same tion, employment, income and tax revenues. A study from Maine methodologies or criteria used in these projects such as benefit/cost conducted for the Department of Transportation surveyed bicycle tour analysis, economic impact assessment (local, regional or state), operators to estimate the total economic impact of bicycle tourism cost-effectiveness evaluation, and financial or risk analysis. Of these in the state and to develop marketing recommendations to increase approaches, benefit/cost analysis is the most well-known and most bicycle tourism (187). From this research, they estimated the size frequently relied on in transportation projects. It provides a means and characteristics of the bicycle tourism market in terms of socio- of comparing the effects of contemplated policies or projects on economic class, spending patterns, direct and indirect impacts. Finally, social welfare. It requires identifying all project impacts (positive Michigan has also estimated spending by users of local rail-trails or negative) in the present and the future and then assigning an eco- while participating in organized bike rides (188). nomic value to these impacts. A second level of analysis focuses on regional geographic areas or A handful of research studies attempt to calculate benefit-cost entire cities. Buis (69) offers an international application describing ratios for bicycle-specific projects. The general approaches and data the results of calculations in Amsterdam, Bogot, Delhi, and Moro- used in doing so are presented in Table 13, together with values. As goro. Using existing data from each municipality about proposed or can be seen, all show that benefits exceed costs. Such consensus is existing bicycle policy, such as investments in infrastructure and a reflection of a variety of factors, including the inexpensive nature reported saved motorized journeys, this research attempts to capture of bicycle facilities (i.e., a low valued denominator) and optimistic the cost of the facilities. The benefits in the four different cities, while adoption rates of such facilities. not calculated consistently for each setting due to the availability of data, used infrastructure, user, and safety information that were translated into U.S. dollar amounts. In each case, the calculations REVIEW OF PREVIOUS RESEARCH demonstrate that the benefits exceed the costs; the benefit-cost ratio was more pronounced in cities that have not yet invested in cycling Reviewing past research on this subject in a systematic manner is facilities. A study prepared on behalf of the Institute of Transport challenging because geographic scale, research depth, overall qual- Economics in Oslo is in many respects, among the most robust of ity, and focus of past study varies considerably, and few studies build available work (189). This research estimates the average bicycle rid- on previous efforts. To the extent that some of the measured bene- ership in three Norwegian cities (Hokksund, Hamar and Trondheim) fits overlap (see Table 14), we present values derived from six dif- and determines a project's calculated profitability, or net benefit. ferent studies. There remains considerable disparity between values This research claims to have used low benefit estimates, and con- that are imputed. cludes that spending money on future infrastructure benefits soci- A second observation is that there is no clear strategy to delineate ety in those three cities. Saelensminde ascribes monetary values to what constitutes such a benefit. We cast a relatively wide net in what all aspects from security and crash reduction to health benefits and we consider a study of bicycle benefits. Our definition includes any parking. research effort describing or attributing an economic value to bicy- Using a slightly different geographic unit, research by Fix and cling or bicycle facilities. Loomis (67) use a travel cost model to estimate the economic bene- By our tally this includes more than 25 studies, which comes close fits to users of mountain bike trails in Moab, Utah. They did so mea- to representing the universe of all available and published research suring consumer surplus and individual per-trip values. The second efforts. Each of these studies are presented in alphabetical order of these studies, also focusing on the Moab area, compared non- (author's name) in Table 15 showing the date, title, and geographic market valuation techniques by applying the TCM and the dichoto- level to which the study applies and an indication of whether the mous choice contingent valuation method (CVM) (68). Also included report appears in a peer-reviewed outlet. The research ranges from in this group of studies is an exercise, now more than 25 years general overview pieces to those examining ridership data within old, that created a computer model analyzing savings reaped from a traditional benefit-cost framework. Eleven are published in peer increased cycling on a college campus (190). The computer simu- reviewed outlets. Many of the studies have a tone of advocacy to lation results generate a benefit-cost ratio by multiplying the bene- their analysis and findings. Below we provide a brief review of each fits per mile for each commuter type by the miles per year traveled of these studies. by that commuter type and sums it over commuter types and years. The first--and largest--geographic area includes a series of studies Subsequent research discusses the applicability of applying man- conducted for individual states to calculate the economic impact of agement economic techniques to bicycle and pedestrian transporta- cycling and related industries. In Colorado, more than 6,000 house- tion systems (191). holds and a selection of bicycle manufacturers, retail bicycle shops, Next are a handful of studies that focus on specific facilities. and ski resort operators were surveyed to glean a better understand- The Sharples work (66) is valuable because it lists a variety of

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C-2 TABLE 13 Cost-benefit studies Author/Date Context Ratio Comments Everett (1976) University of So. 1.7 : 1 Uses computer and hand-calculations Mississippi to estimate benefits and costs on a university campus. Dated, difficult to replicate. Buis (2000) Amsterdam, 1.5 : 1 Each case attempts to answer: "What Netherlands economic benefits can be attributed to Bogot, Colombia 7.3 : 1 an increase in bicycle use due to local bicycle policies?" Wealthier, currently Morogoro, Tanzania 5:1 bicycle-friendly countries benefit to a lesser degree than do poorer, less well- Delhi, India 20 : 1 invested countries. Saelensminde Hokksund, Norway 4.09 : 1 Ratio based on "best estimates" of (2002) Hamar, Norway 14.34 : future cycling/pedestrian traffic. Cities 1 with the least amount of infrastructure Trondheim, Norway 2.94 : 1 in place see the most benefit from new infrastructure. Przybylski & Central Indianapolis 1.43 : 1 Estimates benefits by Unit Day Values Lindsey (1998) Waterfront Greenway and costs (based on construction costs) Ohio River Greenway 1.9 : 1 to establish cost-benefit ratio. considerations that are applicable and subsequently demonstrates in estimate the benefits of proposed greenway projects (193). Using a specific application how to evaluate related costs and benefits a rating system established by the U.S. Army Corps of Engineers (192). She generates specific values around such diverse costs as air (USACE), scores based on the USACE project evaluation scheme pollution and crash reduction. However, her benefits rely almost are converted to dollar values, also established by the USACE. While exclusively on first-hand experience of one particular corridor using useful for estimating value, this work is limited because it only esti- personally collected data. Lindsey and Knaap (76) use contingent mates use value. The same study also estimates use and net benefits valuation to understand how much residents are willing to spend for of the greenway projects and includes a regional economic impact a greenway facility. A different approach applied unit day values to analysis for the two trails. TABLE 14 Benefits from six studies Betz Fix & Lindsey Litman Nelson Sharples Loomis Benefit Air Pollution $0.20 - $0.24 - 184 kg $0.40 $0.40 of CO2 Congestion $0.04 - $0.03 - varies $0.40 $0.32 Earnings $14,434,000 Ecological/ $0.23 $0.23 Environmental Economic $18.46 - $197 - $1.43-$6.13 Benefits $29.23 $205 UDV (surplus) (surplus) Energy Costs $0.10 - $0.12 Jobs 982 FTE Noise $0.05 - $0.02 1.5 dB $0.10 Parking $0.25 - $0.23 - varies $1.50 $2.25 Road $0.05 - $0.02 varies Maintenance $0.10 Road Safety 450,00 0 Sales (from $21,000,000 derived est. demand) User Savings/ $0.55 - $0.40 - 7,472 Driver Costs $0.85 $0.60 Total $1.37 - $1.27 - $3.20 $3.42

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C-3 TABLE 15 Summary of literature examining economic aspects of bicycle facilities Author (date) Title Geography Summary Peer Review Argys, Mocan Bicycling and Walking in State Provides statistical information No (2000) Colorado regarding the economic impact of bicycling in Colorado, and documents bicycling behaviors and attitudes of residents of Colorado. Buis (2000) The Economic City The results of four cost-benefit No Significance of Cycling calculations: Amsterdam, Bogot, Delhi, Morogoro. Everett (1976) Measuring the Economic University Analysis of how labor-intensive Yes Value of Exercise in campus transportation modes provide Labor-Intensive Urban needed exercise. Quantifies Transportation Systems health benefits and the economic benefit of reducing coronary heart disease. Everett, Dorman New Approach to University Applies managerial economics Yes (1976) Economic Evaluation of campus tools to quantify the benefits of Labor-Intensive a proposed bicycle-pedestrian Transportation Systems transportation system. Fix, Loomis The Economic Benefits of Mountain Compares non-market Yes (1997) Mountain Biking at One of bike trails, valuation techniques by Its Meccas Moab, Utah applying a data travel cost method and contingent valuation method to mountain biking. Fix, Loomis Comparing the Economic Mountain Estimates the value of Yes (1998) Value of Mountain Biking bike trails, mountain biking using travel Estimated Using Revealed Moab, Utah cost method. and Stated Preference Lindsey et. al Use of Greenway Trails in Greenway Informational report on trail use No (2002) Indiana system in Indiana. Lindsey, Knaap Sustainability and Urban Greenway This case study examines Yes (2003) Greenways (Indiana) system whether the greenways system in Indianapolis, Indiana, is sustainable using a framework based on six principles of sustainability recently proposed in the planning literature. Lindsey, et al Amenity and Recreation Greenway Presents a taxonomy of the No (2003) Values of Urban system values of greenways and Greenways (Indiana) demonstrates how different values can be measured using complementary techniques. Litman (2002) Economic Value of General Uses economic evaluation No Walkability methods to investigate the value of walking. Analysis may be applied to other non- motorized travel modes. Litman (1999) Quantifying the Benefits of General Examines the degree to which No Non-Motorized Transport non-motorized travel help for Achieving TDM achieve Transportation Demand (continued)

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C-4 TABLE 15 (Continued) Objectives Management objectives, including congestion reduction, road and parking facility cost savings, consumer cost savings, etc. Maine DOT Bicycle Tourism in Maine State (three Summarizes study to estimate No (2001) trails) the total economic impact of bicycle tourism by estimating the tourism market. Moore (1994) The Economic Impact of Three trails Examined economic impact Yes Rail-Trails generated by three diverse rail- trails in Iowa, Florida, and California. Impacts were broken down into users expenditures related to trail visits. Moore, The Economic Impacts and Trail Investigates use patterns and No Barthlow (1998) Uses of Long-distance economic impacts of long Trails distance trails. Case study of Overmountain Victory National Historical Trail. Nelson A. Private Provision of Public National Presents findings to support Yes (1995) Pedestrian and Bicycle that implementing bicycle and Access Ways pedestrian access ways will result in economic benefit. Vogt, Nelson A Case Study Measuring Trail Compiles executive No (2002) Economic and Community summaries from research Benefits of Michigan's reports that have been Pere Marquette Rail-Trail completed as part of this case study. Includes economic benefit generated by trails used for organized rides, property owners' opinions. PKF Consulting Analysis of Economic State Investigated seven categories No (1986) Impacts of the North including tourism, property Central Rail Trail values, local resident (Maryland) expenditures and public sector expenditures to determine an economic value. Przybylski, Economic Evaluation of State Describes procedures used in No Lindsey (1998) Major Urban Greenway economic evaluations of two Projects major greenway projects in Indiana. Includes benefit-cost analyses and regional economic impact analyses. Saelensminde Walking- and cycling-track City Cost-benefit analyses of No (2002) networks in Norwegian walking- and cycling-track Cities networks based on use of the networks. Schutt (1998) Trails for Economic Trail Summarizes a user and Yes Development: A Case economic impact study of the Study Bruce Trail in Ontario. Sharples (1995) A framework for the General Suggests framework for how to Yes evaluation of facilities for determine who will be affected cyclists Part 1 by new cycling infrastructure (continued)

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C-5 TABLE 15 (Continued) and how. Sharples (1995) A framework for the Roadway Applies the above framework Yes evaluation of facilities for to Wilmslow Road Corridor in cyclists Part 2 Manchester, England. Siderlis, Moore Outdoor Recreation Net Trails in Estimates net economic values Yes (1995) Benefits of Rail-Trails multiple with the individual travel cost states method for three rail trails in different U.S. Regions. Sumathi, Berard Mountain Biking the Trail system Profiles mountain biking user No (1997) Chequamegon Area of characteristics from the Northern Wisconsin Chequamegon Area Mountain Biking Association trail system. Wittink (2001) On the Significance of City Presents the effectiveness of No Non-Motorized Transport non-motorized transport in relation to economic growth, poverty reduction and quality of life urban areas and on the applicability of arrangements in the Netherlands. Betz et al. (62) combine contingent valuation and TCM methods Recreation values for the trail were estimated using the TCM to estimate demand for visiting a greenway in northern Georgia and method. A more general work absent of a geographical context (71) measures of consumer surplus. More recently, Lindsey et al. (72) focuses on walking aspects that can also serve as useful reference demonstrated how different values of a specific greenway could be for cycling research. This piece suggests that benefit-cost analysis estimated using complementary techniques. They measured the offers the broadest brush at identifying the full range of benefits but impacts of greenways on property values in Indianapolis using again stops short of suggesting specific methods and strategies for residential real estate sales data, GIS, and hedonic price modeling. doing so.