Cycling economy

Cycling addressess society’s biggest challenges and ECF actively works to put it on the political agenda. To do so, cycling needs to speak the language of economics. Business and job creation are critical arguments in this context. How could mobility policies evolve if politicians understood the excellent return on investment that cycling infrastructure provides? How many jobs could be created across the various sectors of the cycling economy? What factors must be considered when calculating the economic impact of cycling?
The benfits of cycling
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2M
green and sustainable jobs if the levels of cycling were doubled
16M
tons of CO2 are saved by cycling every year in the EU
150B€
in economic benefits from cycling in the EU

Jobs and jobs creation in the European cycling sector

Cycling already provides approximately 1.35 million jobs in the EU. A cycling industry that is better supported by the EU can sustain well over two million jobs. Many of these jobs sustain valuable tourism income in rural areas and are often clustered in towns and cities in the EU that are economically struggling. New cycling industry jobs can increase bicycle manufacturing in Europe and provide stable incomes to millions of people.

 

Read our paper on job creation in the European cycling sector. Please note that this paper hasn't not been updated in 2014.

 

Fiscal incentives

Fiscal incentives play a pivotal role in promoting active mobility by making it more appealing and financially viable for individuals. Purchase incentives, such as subsidies or tax breaks for bicycles, e-bikes, and related accessories, lower the entry cost for choosing sustainable travel options. On the other hand, congestion charges, fuel taxes, and parking fees create a financial deterrent for car usage, encouraging a shift towards walking, cycling, or public transport. Additionally, employers can be incentivised to offer benefits like cycle-to-work schemes or reimbursements for active commuting. 

There are almost 300 tax-incentive and purchase-premium schemes for cycling across Europe offered by national, regional and local authorities to make it attractive to cycle more and drive less. ECF has mapped these schemes in an online tool that provides information about the size of the subsidy. 

ECF's report, ''commuting who pays the bill'', offers an overview fiscal regimes for commuting in Europe and recommendations for establishing a level playing-field. Please note that this report was published in 2014 and hasn't been updated since.

With over 100 billion EUR, congestion costs European cities over 1% of the EU GDP per year (2016). ECF's report “Congestion charges and cycling” proves the success of investing revenues from congestion charges into a sustainable mobility plan, and particularly cycling. Please note that this report was published in 2016 and hasn't been updated since.

 

 
Further resources