The Value of Spending on Cycling Infrastructure: A Cost Benefit Analysis for London

Abstract

Abstract Economic growth and development growth in cities continues to place greater demand on transport systems to provide improved urban mobility solutions to overcome congestion. Policy makers see cycling as a viable option to provide solutions to reduce congestion and provide mobility choice. Using London as an example, this dissertation investigates the relationship between expenditure on cycling infrastructure and changes in cycling volume. The Mayor`s Vision for Cycling identifies several policy objectives and the method of delivery to ensure cycling becomes a key mode of transport. This study analyses and evaluates the validity of this approach. An investigation into the literature is conducted in order to evaluate the associated costs and benefits of increased cycle volume. Two sets of assumptions are identified, firstly that relates to the benefits of cycling and secondly the road and traffic conditions where increased cycle volume will reduce congestion. Analysis of secondary data provided by Transport for London and the Greater London Authority is conducted to calculate the marginal cost trend and is assessed against the Mayor`s Vision for Cycling. The results of this analysis are combined in a cost benefit analysis model. The findings show that there is economic soundness to the Mayor`s Vision for Cycling however predicted take up rates of cycle volume were optimistic. The results also show that changes in cycle volume are influenced not only by expenditure but a variety of factors such as seasonal variation, perceptions of risk and policy implications around other modes of transport.