The Economic Benefits of Bike Commuting
You can’t put a price on the simple pleasure of riding to work or school, but that hasn’t stopped economists from trying. Community development organizations, business associations, and municipalities have been working to measure the financial stimulus of cycling for decades accurately. There is a near consensus that bikes provide actualized business stimulus and help local communities grow.
Bike Commuting for the Common Good
Dozens of studies measure the economic impact of bike commuting. Researchers include or exclude some variables based on the scope of their study or survey and the needs of specific communities. Most reports cover some core hypotheses on dedicated bike commuters' habits and buying behavior.
Bike commuters need bikes. This obvious but important benefits directly impact local bike shops in retail sales, service and repairs, and aftermarket accessories. (Bike bell, anyone?)
Bike commuters spend money and time. Business districts and communities with bike-friendly infrastructure are more likely to attract commuters and absorb their spending. These businesses often include coffee shops, restaurants, grocery stores, and other brick-and-mortar retail or service businesses, which tend to be locally owned.
There is also substantial evidence that building cycling infrastructure is less expensive than building roadways for vehicles and tends to provide better paying construction jobs.
Personal Economic Benefits of Bicycling
Every person and household is a microeconomy, too. Stats on bicycle commuting and the money it saves is an interesting insight into the overarching costs of car ownership. Owning a vehicle is largely unavoidable for many families, especially low-income households. That makes the money saved by biking to work usually provides increased financial flexibility and security. Researchers found that replacing your car commute with a bike ride will save you roughly $1,568 yearly, about $4.30 per day. Sell a car to become a one-car or no-car family, and you can roughly $4,280 per year, or $356.67 per month.
With energy and insurance prices facing a prolonged period of volatility and inflation outpacing the Fed’s 2% goal, those monthly cost savings could be even more pronounced in the years to come.
Local, state, and federal state governments have continually promoted bicycle commute tax credits, including the eBike Act that would provide a rebate of 30% of the cost of a new eBike for up to $1,500. Investments like those help remove the financial barriers to cycling and encourage a more diverse audience to go by bike.
More Than Bikes: Don’t Forget About Public Transit!
Public transportation options, like BATA in northern Michigan, are more cost-effective than private vehicle ownership, especially if your normal commute is under 10 miles. Many families in our area could benefit financially by making accessible commitments, like commuting by bike on trips under 2 miles.
Invest in Your Community
One of the best ways to enjoy the economic benefits of bike commuting is to invest in bike-centric organizations where you live. Non-profit organizations like Norte Youth Cycling foster community and help get kids pedaling. Learn more about our programs and subscribe to our newsletter to stay in the loop!