On Ya Bike? A Review of the Christchurch Cycleway Network Business Case

19 Pages Posted: 20 Apr 2015 Last revised: 8 Aug 2015

Glenn Boyle

University of Canterbury - Economics and Finance

James Hill

University of Canterbury - Economics and Finance

Date Written: August 8, 2015

Abstract

Transport consulting firm QTP Ltd has estimated that the proposed Christchurch cycleway network provides $8 of economic benefits for every dollar invested. However, much of this is based on faulty economic analysis and the true picture is much less rosy. Every Christchurch household is faced with an average bill of at least $1100 in present value terms for facilities that are predicted to attract only a relatively small and insignificant number of new cyclists, will result in more cyclist accidents and deaths, have at best zero impact on congestion, and yield highly uncertain health benefits. At current expected capital costs and cycleway uptake, it would be cheaper to provide every projected new cyclist with a brand new car.

Keywords: cycleway network, business case

JEL Classification: A10

Suggested Citation

Boyle, Glenn and Hill, James, On Ya Bike? A Review of the Christchurch Cycleway Network Business Case (August 8, 2015). Available at SSRN: https://ssrn.com/abstract=2596322 or http://dx.doi.org/10.2139/ssrn.2596322

Glenn Boyle (Contact Author)

University of Canterbury - Economics and Finance ( email )

Private Bag 4800
Christchurch
New Zealand

James Hill

University of Canterbury - Economics and Finance ( email )

Private Bag 4800
Christchurch
New Zealand

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