The Economics of Cycling

One thing that rising petrol prices have done is to make cycling to work more attractive. It is said demand for petrol is inelastic because of lack of substitutes. Many drivers may not even consider cycling an alternative. But the higher gas prices rise, the more will consider making the switch. Once you have bought a bike between $200 – $400 for a decent new bike, your costs are fairly minimal. Maybe you need to buy more food because you are burning more calories. But, I guess many Americans could do with burning a few extra calories anyway.

Other costs people associated with cycling

• Being sweaty on arrival at work. – Don’t wear too many clothes, use deodorant, don’t cycle too fast.
• Perceived danger of cycling – though not as dangerous as many fear.
• Battling with inconsiderate drivers (though many motorists will have a similar attitude towards inconsiderate cyclists. The difference is mainly that in a collision between a bike and an SUV, there is likely to be one clear loser)

Other benefits of cycling

• - health benefits reduced risk of heart disease.
• – less congestion, could be quicker to cycle to work in some areas.
• – lose weight
• - enjoyment
• - environmental benefits of less carbon emissions.

Critical Mass.

If there are only a few cyclists in your town, cycling is less attractive. The more people cycle, the more attractive it becomes. There is a tipping point where an increase in cyclists encourage more to start.

My cycling Blog