ICLEI Member Helsinki recently conducted the first-ever 'Bikenomics' analysis of a cycling project in Finland.

Bikenomics is a cycling-focused form of cost-benefit analysis. The one in Helsinki evaluated recent work to adapt Hämeentie, one of the major streets in the city centre, for more cycling.

The benefits of the Hämeentie project are significant. According to the analysis, the one-way cycle paths built on the street are a profitable investment for the city: for every euro invested, the bike paths generate 3.6 EUR for the city.

The greatest benefit identified in the analysis links to health. Cycling reduces the health risks and costs of immobility, with people with low levels of mobility benefitting particularly from the increase in daily physical activity.

Another benefit of the Hämeentie cycle paths is the reduction in travel time. Cycling, public transport and walking reduce congestion by moving people from A to B whilst using (road) space efficiently. The Hämeentie analysis supports previous research on the profitability of these modes of transport in limited urban space.

During Hämeentie’s renovation, the tram rails, public transport stop arrangements and underground infrastructure were also renewed. The cost-benefit analysis took into account, among other things, the investment costs and maintenance costs of street redesigns for bicycle traffic, traffic volumes by mode before and after the renovation, shifts from one mode to another, and speeds and travel times.

The benefits and costs were broken down into changes in travel time, externalities such as congestion and health effects, and economic effects such as investment and maintenance costs. Cost data at the time of design were used in the evaluation.

Even once the costs of repairing underground municipal infrastructure (costs that were incurred in connection with the street renovation) are taken into account, the project still generates 1.8 EUR for every one euro invested. This is a good sign, as a project is considered to be profitable if that number is greater than one.

The Bikenomics analysis was carried out as part of Helsinki's work in the CIVITAS Handshake project. For more infomation, click here.