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Estimating the Benefits of Bicycle Facilities Stated Preference and Revealed Preference Approaches Kevin J. Estimating the Benefits of Bicycle Facilities Stated Preference and Revealed Preference Approaches Kevin J. Krizek Assistant Professor Director, Active Communities Transportation (ACT) Research Group University of Minnesota

Do cyclists need their own facilities? Do cyclists need their own facilities?

Dimensions to Measuring Bicycle Benefits For whom? Which benefits? At what geographic level or Dimensions to Measuring Bicycle Benefits For whom? Which benefits? At what geographic level or type of facility Using what units or methods?

Introduction • • Bicycle facilities are non-market goods Not bought and sold in an Introduction • • Bicycle facilities are non-market goods Not bought and sold in an open market Difficult to attach an economic value What would economists do?

Stated Preference • Survey instrument • Respondents provided with hypothetical situations, making it feasible Stated Preference • Survey instrument • Respondents provided with hypothetical situations, making it feasible to analyze situations that are qualitatively different from the actual ones seen in practice • Individuals’ stated preferences may or may not be similar to the preferences they actually show

Stated Preference • Application to Bicycle Facility Benefits: – Provide survey respondents with hypothetical Stated Preference • Application to Bicycle Facility Benefits: – Provide survey respondents with hypothetical choices between different types of bicycle trails – Respondents indicate how much extra time they would devote to accessing a preferred facility

Revealed Preference • What people do, rather than what they say. • Identifies the Revealed Preference • What people do, rather than what they say. • Identifies the ways in which a non-marketed good influences the actual market for some other good

Revealed Preference • Application to Bicycle Facility Benefits: – The effect of bicycle trails Revealed Preference • Application to Bicycle Facility Benefits: – The effect of bicycle trails on home sale prices – Are individuals paying more for the option of using bicycle trails?

(Adaptive) Stated Preference Application Goal: to measure how much people say they value certain (Adaptive) Stated Preference Application Goal: to measure how much people say they value certain bicycle facility attributes. How much is a bike lane worth to you? How much is having an off-road facility worth to you? How much is having parking removed from the side street worth to you?

Facilities Compared in this Study Off Road Bike Lane, No Parking Bike Lane with Facilities Compared in this Study Off Road Bike Lane, No Parking Bike Lane with Parking No Bike Lane, No Parking No Bike Lane with Parking

Survey • Adaptive Stated Preference Survey – Choices updated based on previous response. • Survey • Adaptive Stated Preference Survey – Choices updated based on previous response. • Bicycling in facility A vs. in B – Compare two bicycle facilities and tradeoff travel time and facility quality.

Choice Scenario Sample – Bicycle Route Comparison Travel Time for Route 1 gets longer Choice Scenario Sample – Bicycle Route Comparison Travel Time for Route 1 gets longer or shorter based on selection.

Additional minutes willing to travel on an alternate, better quality facility before adjusting for Additional minutes willing to travel on an alternate, better quality facility before adjusting for demographic variables Summer* (Minutes) Summer** ($) Winter* (Minutes) Winter** ($) 9. 86 $1. 97 6. 15 $1. 23 13. 98 $2. 80 10. 27 $2. 05 Vs. 16. 26 $3. 25 12. 54 $2. 51 Vs. 20. 38 $4. 08 16. 66 $3. 33 Base Alternate Vs.

Additional Minutes willing to travel on Alternate Facility before adjusting for demographic variables Base Additional Minutes willing to travel on Alternate Facility before adjusting for demographic variables Base Alternate Vs. Summer* (Minutes) Summer** ($) Winter* (Minutes) Winter** ($) 8. 29 $1. 66 4. 57 $0. 91 11. 71 $2. 34 7. 99 $1. 60 18. 02 $3. 60 14. 30 $2. 86

Additional Minutes willing to travel on Alternate Facility before adjusting for demographic variables Summer* Additional Minutes willing to travel on Alternate Facility before adjusting for demographic variables Summer* (Minutes) Summer** ($) Winter* (Minutes) Winter ** ($) Vs. 15. 83 $3. 17 12. 11 $2. 42 Vs. 14. 69 $2. 94 10. 96 $2. 19 Base Alternate * Values as shown apply to females. For males, the minutes in each cell should be reduced by 3. 71 minutes and dollar values should be calculated from the resulting number. Adjustments for income, house hold size and age should be made using the model coefficients. ** Hourly rate used is $12/hr.

Revealed Preference Goal: to measure how much people do they value certain bicycle facility Revealed Preference Goal: to measure how much people do they value certain bicycle facility attributes.

Roadside Bicycle Trail Non-Roadside Bicycle Trail On-Street Bicycle Lane Roadside Bicycle Trail Non-Roadside Bicycle Trail On-Street Bicycle Lane

Variables and Descriptions Variables and Descriptions

Regression Results Spatial Structural Regression Results Spatial Structural

Estimating the Benefits of Bicycle Facilities Stated Preference and Revealed Preference Approaches Kevin J. Estimating the Benefits of Bicycle Facilities Stated Preference and Revealed Preference Approaches Kevin J. Krizek Assistant Professor Director, Active Communities Transportation (ACT) Research Group University of Minnesota

House Hold and Other Information The survey also asked household and travel behavior questions. House Hold and Other Information The survey also asked household and travel behavior questions.

Results Facility Key A – Off-Road Trail B - Designated Bike Lane, No Side Results Facility Key A – Off-Road Trail B - Designated Bike Lane, No Side Parking C – Designated Bike Lane, Side Parking D – In-traffic Bicycling, no Side Parking E – In-traffic Bicycling, Side Parking

The Model The Model

Regression Results Regression Results

Motivations • Encouraging cycling as a viable mode can potentially be easier when you Motivations • Encouraging cycling as a viable mode can potentially be easier when you have facilities that people prefer. • Measure how much people value certain facility attributes. • What do people want? – How much is a bike lane worth to you? – How much is having an off-road facility worth to you? – How much is having parking removed from the side street worth to you? • Are there differences across Age, Gender, and Income in preferences?