The value of time and external benefits in bicycle appraisal

Maria Börjesson
Jonas Eliasson

We estimate the value of time savings, different cycling environments and additional benefits in cost-benefit analysis of cycling investments. Cyclists’ value of travel time savings turns out to be high, considerably higher than the value of time savings on alternative modes. Cyclists also value other improvements highly, such as separated bicycle lanes. As to additional benefits of cycling improvements in the form of health and reduced car traffic, our results do not support the notion that these will be a significant part in a cost-benefit analysis. Bicyclists seem to take health largely into account when making their travel choices, implying that it would be double-counting to add total health benefits to the analysis once the consumer surplus has been correctly calculated. As to reductions in car traffic, our results indicate that the cross-elasticity between car and cycle is low, and hence benefits from traffic reductions will be small. However, the valuations of improved cycling speeds and comfort are so high that it seems likely that improvements for cyclists are cost-effective compared to many other types of investments, without having to invoke second-order, indirect effects. In other words, our results suggest that bicycle should be viewed as a competitive mode of travel and not primarily as a means to achieve improved health or reduced car traffic.



Cost Benefit Analysis (CBA) workshop in Stockholm

An open seminar and workshop in Stockholm will be held on 25-26 April 2018. The workshop deals with the use of CBA as a basis for decision-making in the public sector. The workshop is organized by, among others, Professor Jan-Eric Nilsson, VTI.



Ulf Sandberg has been presented with the TTI Lifetime Achievement Award 2018

VTI’s Senior Research Leader Ulf Sandberg has been presented with the TTI Lifetime Achievement Award 2018 for his work on research into tyres and road surface.


Steps need to be taken to increase traffic safety of automated cars

Several steps are necessary to ensure that automated and connected cars will lead to increased traffic safety – everything from ensuring that technology takes vulnerable road users into account, to new forms of driver training. This has emerged in a position...


FALCON examines challenges in the transport sector

VTI is one of several important partners in the major FALCON project*, whose purpose is to create knowledge and insight regarding the transport sector. In an initial subproject, VTI has produced a manual on transport, logistics and multimodality.


VTI joined research cooperation in China

In December 2017 VTI became a member of China-Sweden Research Centre for Traffic Safety (CTS).


Swedish German research collaboration on Electric Road Systems

The project “Swedish-German research collaboration on Electric Road Systems” (CollERS) has now officially started. The goal of the project is to increase the common knowledge around Electric Road Systems by cooperation between Germany and Sweden and to...


Electric Road Systems Conference 2018

After a successful first conference in June 2017, the Swedish research and innovation platform for electric roads is arranging the second dedicated International Conference on Electric Road Systems (ERS) June 13th and 14th 2018.