Economic Benefits of Cycling

Bicycling investments have been challenged to meet the typical standards to which transportation projects are held: travel time savings, shifts away from automobile demand, and safety improvements. Interest in the livability, environmental, public health and economic impacts of non-motorized travel have shifted the discussion to the broader benefits that might be attributed to these investments, including those impacts on the business community. Given the extent and maturity of Portland's existing bicycling infrastructure and the ambitious level of anticipated future investments [1], the timing is right to investigate their economic benefits. Previous studies have attempted to identify and quantify these relationships…

Bicycling investments have been challenged to meet the typical standards to which transportation projects are held: travel time savings, shifts away from automobile demand, and safety improvements.  Interest in the livability, environmental, public health and economic impacts of non-motorized travel have shifted the discussion to the broader benefits that might be attributed to these investments, including those impacts on the business community. Given the extent and maturity of Portland’s existing bicycling infrastructure and the ambitious level of anticipated future investments [1], the timing is right to investigate their economic benefits.

Previous studies have attempted to identify and quantify these relationships for a variety of scales, trip purposes, and economic factors. However, most of these studies focus on recreational cycling, do not take a comprehensive approach, and do not rely on in-depth analysis of the full complement of benefits to the business community that could be attributed to cycling infrastructure and subsequent demand. Planners still struggle with information that can help guide decisions about the impacts of their non-motorized projects and often meet resistance from the business community, based upon the perceptions that bicycle lanes and parking may interfere with their automobile-oriented customer base.

In this proposed study, we aim to develop a methodology to estimate the economic impacts that accrue to business owners proximate to bicycle investments and apply this method in the context of Portland, OR. The scope would examine the relationship between bike infrastructure and cycling activity to the patronage of local businesses, including:

• The overall benefits of cycling supportive infrastructure (bike boulevards, lanes, trails and parking treatments) to local business owners,
• Quantifying the proportion of customers that arrive by bicycle for a variety of business types, locations and transportation contexts (trip rates and mode splits),
• Evaluating the use of bicycle and automobile parking facilities,
• Assess the business community and patron perceptions of cycling facilities, and
• Compare the frequency of visits and level of spending by cyclists in local businesses to other patrons.

The study will accomplish the above goals by administering a survey of local business owners and conducting intercept surveys and transportation counts at the individual business establishment locations. These locations will be chosen based upon the characteristic of the individual business, the commercial district, market area demographics, land use/built environment context, and the transportation environment, including level of accommodation for bicyclists.

This research proposal is a collaborative effort between Portland State University, Portland Development Commission (PDC) and the City of Portland and the effort will be led by Dr. Kelly J. Clifton, Associate Professor of Civil and Environmental Engineering at PSU. The research will engage graduate and undergraduate students at PSU to participate in data collection and analysis. The results will inform the efforts of the City of Portland and PDC to plan for bicycling, revitalize neighborhoods, and support the local business community through economic development programs. In addition, this work will fill knowledge gaps in the scholarly literature on the economic impacts of cycling and trip generation in infill development in a multi-modal context.