Estimating Welfare Change Associated with Improvements in Urban Bicycling Facilities

Abstract

Prior research has focused on estimating the heath, air quality, safety, and congestion relief benefits of bicycling facilities. Bicycling facilities also provide bicyclists with a more enjoyable and safer feeling experience. An estimate of the total welfare change, or net benefits, associated with providing improved bicycle facilities should therefore include the value of these additional benefits. This study estimates welfare change as willingness to pay (WTP) for improvements in bicycling facilities using several different methods to value travel time. Three types of improvements are considered: cycle tracks, bicycle lanes, and street lighting. A stated preference survey asked respondents to choose between different levels of bicycle facility improvements and travel time, and also asked respondents for their average and marginal wage rates. Cycle tracks were valued the most, followed by street lighting and bicycle lanes. Greater cycling experience was associated with lower WPT, although increasing age was associated with higher WTP. WTP estimated from either average or marginal wage rates produced similar results, whereas the regional wage rate produced much higher WTP estimates.