Net Zero

Should Governments Subsidise E-bikes Instead of EVs?

Many governments have implemented subsidies to accelerate the transition to electric vehicles (EVs). The UK government has recently announced £650 million in grants for people to buy EVs. However, this​ article argues that they would have achieved better outcomes by subsidising e-bikes instead.

Key Takeaways

• In the UK, almost no subsidies are available for e-bikes and e-cargo bikes.
• E-bike owners replace lots of trips and miles driven by cars.
• The upfront cost of around £2,000-£3,000 is a barrier to more people owning one, despite e-bikes being much cheaper than cars.
• Estimates of annual carbon savings from e-bikers avoiding car trips vary, from as little as 87kg CO₂ to 394kg.
• Policies that encourage active travel, including cycling, have large benefit to cost ratios on average. Internationally, it’s 6:1. These benefits are largely savings for the healthcare system.
• E-bike incentives can be designed to appeal primarily to lower-paid individuals, who have been found to use their e-bikes more frequently than wealthier buyers, thereby reducing the number of car trips.
• The new EV grant money could provide nearly 750,000 e-bike or e-cargo bike purchase-incentives the size of Canadian ones, which could lead to annual carbon savings of 1.125 million tonnes of CO₂,
• Given the benefit to cost ratio, this investment could also reap more than £3.6 billion in social benefits.

Comment

We need to improve our prioritisation of investments to reduce carbon emissions. Some research suggests that investing in charging infrastructure is a better use of funds than subsidising EVs themselves. Given the significant health benefits associated with e-bike subsidies, perhaps they should be funded from healthcare budgets. However, healthcare systems tend to underinvest in prevention significantly, so this will probably not be realised.

Of course, if we stopped the numerous subsidies for driving, it would provide a significant amount of funding to support both the transition to EVs and the adoption of e-bikes.

What Next?

Do you have a thorough analysis of the various costs and benefits of different government spending initiatives aimed at reducing carbon emissions? Are you spending the money in the most effective way?

Bikeshare

Solving the First Mile Problem: Lessons from Dutch Station Bike-Share

There is a lot of discussion in transport circles about the first and last mile problem - the difficulty in connecting passengers from their origin to a public transport station, or from a station to their final destination. This research examined the costs and benefits of a bike-share program for supporting first and last mile connections in the Netherlands.

Key Takeaways

• The study analysed the OV-fiets program in the Netherlands, a station-based round-trip bike-sharing system designed to improve last-mile connectivity for train commuters.
• OV-fiets users must return bicycles to the same station from which they were rented within 24 hours.
• As of 2023, OV-fiets has expanded to include 22,500 bicycles at 288 locations nationwide, with rentals offered at a flat rate of €4.45 for 24 hours.
• The OV-fiets scheme had a social benefit-cost ratio (BCR) of between 1.1 and 2.4.
• Primary benefits include enhanced accessibility, reduced road congestion, and improved health outcomes.
• The program proves particularly effective for short-distance travel segments between 2.2 and 5.5 km.
• The estimated operation and maintenance of OV-fiets show a modest overall loss over the 20-year period, with significant losses for operators from 2004 to 2015. In later years, increased ridership led to higher revenues and greater profitability.
• The results make the case for continued investment in the program and emphasise the need for ongoing bicycle safety measures and infrastructure improvements.
• Copying the scheme into other contexts is not straightforward. The seamless integration of bikes with trains is crucial, and operators must be willing to accept operational losses.

Comment

The Dutch scheme has been a success overall, but it took a long time to become operationally profitable, and this is in a country with a much stronger cycling culture than most. In other jurisdictions, it may be more effective to focus on enhancing walking and cycling infrastructure, including easy cycle parking at the station, as well as improving public transport links to the station.

What next?

Do you have a comprehensive strategy for tackling the first and last mile problem?

Leadership

Less Traffic, More Walking: How School Streets Are Changing Everything

A School Street is a road outside a school with a temporary restriction on motorised traffic at school drop-off and pick-up times. They originated in Italy but have been adopted in the UK with enthusiasm, with one London Council expecting to have 90% (around 55) of its primary schools with School Streets by the end of the year. The remaining schools are all on main roads. Lots of resources on school streets can be found here.

Key Takeaways

• School Streets aim to encourage walking, cycling and scooting to school by creating safer and more pleasant environments.
• They reduce traffic and congestion during the "school run".
• Reduce air pollution around the school gates due to reduced vehicle idling.
• Reduce instances of dangerous driving, parking and turning outside schools.
• Relatively simple to implement and low cost.
• Improve physical and mental health amongst pupils.
• Help develop early active travel habits that can be carried into later life.
• A successful School Street requires involving the school community as much as possible in the design and implementation of a scheme.
• Ongoing communication is required to share the benefits and success of School Streets, reinforcing their value and gaining support for permanent implementation. This will also encourage other schools to begin requesting the implementation of a School Street.
• They should be part of a wider behaviour change programme, including cycle training, protected cycle lanes, crossing improvements, low traffic neighbourhoods, Walking and Cycling Buses and Park & Stride schemes.

Comment

School Streets are low-hanging fruit for most places in improving our transport systems, with benefits widely spread across the community, including for drivers, making them popular when properly communicated. There is a lot of guidance available for places that wish to progress with School Streets.

What next?

Should you be starting a School Streets program?

Quick Adventures in Transport Wonderland

Here is what I came across this week:

• Two proposals for High-Speed Rail in the same corridor, but one costs one-sixth less? Here is the article, and here is a podcast interview about it.
• The Maryland Department of Transportation has produced a Customer Experience Action Plan outlining near-term initiatives.
• Transitioning to electric buses is not as straightforward as simply replacing a diesel bus with an electric one. This research examined how to help plan the transition.

Blog

Making Smart Decisions About High-Speed Rail

This week, my blog looked at the strategic considerations when contemplating undertaking a High-Speed Rail project.

Innovation

Moveable Forests

How can we quickly, easily and cheaply show people what it would be like if we dedicated less space to cars and more to making places pleasant? How about a moveable forest?

Tool

Guide to Calculating Injury Costs

The National Safety Council (NSC) in the United States has created a guide to calculating the costs of fatal and non-fatal preventable injuries.