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January 20th 2012

Proposal for Research by:

Valuing the Benefits of

Cycling in Los Angeles

County

Discussion Guide

Objective

• Discuss existing research, bringing together different sources of evidence of the potential economic benefits of increased cycling

• To discuss the economic benefits of cycling and the ways in which cycling can contribute to the Vision, Mission, Values and Core Business Objectives of Los Angeles County Metropolitan Transportation Authority

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What is an EIA?

• Economic impact analysis (EIA) analyzes the effect of a policy, program, project, activity or event on the economy of a given area.

• The impact area can be a neighborhood, community, region or nation.

• The economic impact is usually measured in terms of:

(1) changes in Economic growth (output or value-added)

(2) associated changes in jobs (employment) and income (wages)

Source: Wikipedia.org 3

Rate of Return

• The Mayor of London and TfL confirmed the overall bill for the London Tour de France cost £ 10.5 Million.

• Economic Impact: Amounts spent by people in connection with the 2007 Tour de France Grand Depart

• Income from total visitor spending in London £73m ÷ £10.5 m spend in investment ( 7:1 rate of return)

• £15 million in Kent and a further £35 million of value generated by the extensive and favourable press coverage.

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What is an EIA? ‘cont

• Economic impacts: is generally what happens when you shock the economy, all else constant.

• Economic contribution analysis is a term that describes the current situation, and is the starting point for impacts.

• User impacts

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User Impact vs. Economic Impact

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User Impacts Economic Impacts

Money Cost to Travel Employment

Travel Time Personal Income

Safety Property Values

Comfort Business Sales Volume

*Values combined to measure total user

benefit

Value added

Business Profit

*Only one should be used to

measure economic benefit.

Fuel Savings Travel Spending

Pine Creek Rail Trail 2006 User Survey and Economic Impact Analysis

Monitored user characteristics and determined (via user survey) the economic impact of purchased “hard goods” and/or “soft goods” (water, soda, candy, ice cream, lunches etc…) Other survey considerations: Overnight Accommodation, trail maintenance, would pay user-fee

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Port of Long Beach – Economic Analysis

• Conducted and scaled user counts

• Designed and carried out survey instrument

• Analyzed data, created report

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Port of Long Beach – Project Log Frame

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Port of Long Beach - Results

• The four scenarios A, B, C and D above are based on analysis of financial and usage projections collected for this report, and a moderate three and half percent discount rate is utilized. Comparisons of direct and indirect benefits are used to determine the project’s benefit/ cost ratio, net present value (NPV), and payback.

• These results are based on the California Department of Transportation Office of Transport Economics methodology which suggests a systematic process for calculating and comparing benefits and costs of a project for two purposes:

• (1) to determine if it is a sound investment (justification/feasibility) and, (2) to see how it compares with alternate projects (ranking/priority assignment).

• http://www.dot.ca.gov/hq/tpp/offices/ote/benefit_cost/index.html

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Port of Long Beach – Lessons learnt

• Willingness or non-willingness to Pay is based on the contingent value method – directly asking individuals their willingness to pay for changes in recreation opportunities - applied to site-specific studies only.

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CA Coastal Trail Visitor Survey

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National Scenic Byway Grant – SLOCOG

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Economic Impact Tool for National Scenic Byways and All American Roads RIMS II

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Discuss relevance of Economic Analysis of Desmond Bridge Replacement work by Los Angeles County Economic Development Corporation – LAEDC (unobtained)

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Gerald Desmond Bridge

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Happy Holidays – Scenic Byways in LA?

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Began review attributes of 26 Economic Studies specific to C/B of Non-Motorized

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Attribute Study

Mobility (Access) Bikeinfo.org

Increased Livability(?) Bikeinfo.org

Time Savings – Travel Time Savings Bikeinfo.org

Decreased Auto Use – Congestion Reduction Bikeinfo.org

Decreased Heath Costs – public health Bikeinfo.org

Travel Spend Data Dean Ryunan

Health Costs – increased physical activity Active Transport

Recreation Bikeinfo.org

Fuel Savings (value of gasoline) Active Transport

Coded the attributes results

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Study review available methodologies – identified areas of weakness

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Travel Time Savings

Accidents

Public Health

Congestion Reduction

Environmental Benefits

CO2 Reduction

User Cost Savings

Access

Valuing the benefits of Cycling

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Business Case and Evaluation of Cycling in London 2004

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JBG Economic Reporting Tool v1.0 Beta

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