What Are The Economic Benefits of Increased Cycling?

The national bicycle industry supports over 1 million jobs, generates close to $18 billion in taxes from all levels of government, and contributes close to $47 billion in meals, travel, and lodging purchases made during bike trips and tours, totaling approximately $133 billion annually to the U.S. economy.

This research was created by the League of American Bicyclists to investigate the social benefits of the cycling industry and bicycle tourism on regional and local economies. The paper also examines the cost-effectiveness of infrastructure expenditures for bicycles, estimates the cost savings from bicycling, and lists the advantages of bike facilities for nearby communities and business districts.

Cycling serves as an inexpensive, strong-yield, sustainable solution to environmental and equality challenges in cities and has huge economic benefits for people, cities, and society. By 2050, compared to present predictions, increasing cycling and electric biking might reduce energy consumption and carbon dioxide emissions from urban transportation by up to 10%.

 Investments in bicycle infrastructure generate employment possibilities and present chances to grow current industries or launch new ones. When compared to other modes and strategies, the amount of investment required to increase cycle mode shares and truly combat climate change is small, and it offers one of the highest returns on investment. 

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Currently, cycling makes up 6% of all urban trips worldwide, with more than 50% of those trips taking place in China, Japan, and a few European nations like the Netherlands and Denmark. Only 1% of trips in cities in the US and Canada are made on bicycles. Building cities for cycling will not only result in cleaner air and safer streets, but it will also help people and governments save a lot of money that can then be used for other purposes. That is wise urban planning.

The state and local economies may be significantly impacted by cycling because it is a cheap, healthy, and ecologically beneficial alternative to driving. Despite the fact that the majority of trips in the U.S. are still conducted by car, policymakers and the general public are becoming more and more interested in bicycles as a practical, economical means of transportation.

The negative economic costs that motorized vehicles place on society, including congestion, fatalities on the road, inactivity and bad health, pollution, and the political and environmental costs of preserving fossil fuel supply, would also be mitigated by increasing cycling.

The GTA’s Chief Medical Officers estimate that a rise in bicycle, pedestrian, and public transportation use would avert 338 premature lives annually and provide $2.2 billion in annual economic benefits.

Economic Benefits of Increased Cycling

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  • Cycling is an aerobic workout that helps lower the chance of developing a number of illnesses, including diabetes, heart disease, and obesity. As a result, there may be a decrease in the price of healthcare for treating certain disorders.
  • There is less traffic on the roadways as more individuals opt to pedal rather than drive. In addition to reducing infrastructure costs related to building and maintaining roads, this can also reduce travel times and fuel costs for drivers.
  • Cities with a good cycling infrastructure may draw more tourists because cycling can be a popular tourist activity. Increased spending at neighborhood establishments like restaurants, stores, and hotels may result from this.
  • It has been demonstrated that regular exercise enhances cognitive performance and productivity. Employees who commute by bicycle might be more alert and effective all day.
  • Cycling is an eco-friendly, emission-free form of transportation. Cycling can help reduce contaminants in the air and greenhouse gas emissions by lowering the number of cars on the road, which can have economic advantages in the long run by lowering the costs associated with damage to the environment.
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  • Cycling is an economical means of transportation that can help families cut spending on things like gas, parking, and fares for public transportation.
  • Generally speaking, running a bicycle is less expensive than maintaining a car because it requires less maintenance. Families may benefit by paying less for upkeep and repairs.
  • Cycling is doing something physical that can enhance general health and lower the chance of developing a number of medical disorders. Couples may be able to avoid spending funds on healthcare expenses related to treating these disorders by cycling frequently.
  •  Families can participate in the pleasurable and engaging hobby of cycling together. Families can spend valuable time together without needing to spend money on other activities by cycling as a family.
  • Families can lessen their carbon impact and promote a healthy environment by cycling more and driving less.


An enormously untapped prospect for economic development across America is an investment in bicycles. Significant economic benefits would result from more Americans being able to use bicycles for daily transportation, including increased economic productivity due to a more fit and efficient workforce; increased mobility and personal savings for Americans; easier access to education and employment opportunities for underprivileged groups; and a spike in business and tourism revenues.

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