Cost-benefit of bicycle infrastructure with e-bikes and cycle superhighways

In this paper a cost-benefit analysis is performed to evaluate an ambitious cycle superhighway infrastructure in the Greater Copenhagen area. In the analysis, we separate the effects of electric and conventional bikes and the estimation of user benefits thus allow differentiation with respect to travel time savings due to different travel speed profiles and different external effects regarding health and safety for different bicycle technologies. The cost-benefit analysis show that the proposed bicycle infrastructure has a positive net present value with an internal rate between 6% and 23% depending on different assumptions. The cost-benefit performance of the analysed bicycle infrastructure thereby exceeds other types of network infrastructure that is often prioritised. At the specific level, it is found that larger shares of e-bikes implies lower benefits as these bikes provide lower health benefits and larger accident costs. These costs exceeds the higher surplus from travel time savings. The study also show that most benefits are non-local benefits, suggesting that it could be relevant to revise the investment strategy to have a national perspective rather than a local perspective at the municipality level, which is the common practise today.