Assessing Financial Schemes for Commuter Cycling: A Comprehensive Social Cost-Benefit Analysis

Abstract

The Netherlands is confronted with challenges such as traffic congestion, overburdened public transportation, and obesity. These issues could potentially be mitigated by elevating the cycling modal share. To attain this objective, the Dutch central government has introduced a range of strategies aimed at fostering commuter cycling. This study examines one of these strategies, namely financial schemes encompassing the kilometre allowance, lease bike, and 'Fietsplan'. The financial schemes are analysed by creating an extensive conceptual model which is thereafter used to make a comprehensive Social Cost-Benefit Analysis (SCBA). Using both methods contributes to improving the SCBA technique for cycling policies by presenting a well-rounded and extensive assessment of the associated costs and benefits. The results of the SCBA show that the lease bike scheme is the most socio-economically favourable financial scheme. The validity and reliability of the results could be improved by researching the elasticity of the kilometre allowance in relation to the number of additional cycling kilometres, the percentage switcher by different heights of the kilometre allowance and to determine the willingness to pay of individuals for a bicycle to better determine the consumer surplus of the 'Fietsplan'.