The economics of active transport in Queensland

The Economics of Active Transport in Queensland15th Annual Queensland Transport Conference, 2012.

Ian Ker

CATALYST

Consulting in Applied Transport, Access and Land use sYSTems


Why Transport?

The demand for transport is a derived demand We travel to achieve something else

What we achieve through transport is more important than how much we travel

Some achievements are positive Access to employment, education, recreation, goods, services

Maintaining social relationships

Some achievements are negative Air pollution, climate change and other environmental impacts

Social isolation (esp. if you don’t have a car)

Obesity and disease resulting from too little exercise

The West Australian, 9 April 2012


Active Transport, Infrastructure and Urban Development

Opportunity to influence: Urban form

Cost of transport

Social and economic well-being

Individual and community health

The West Australian, 9 April 2012


The School Travel Conundrum


The Work Travel Conundrum

Public

transport

perceived

as poor

commuting

optionWorkers

drive to

work

Public

transport

actually

gets worse

Public

transport

use

decreases

Fewer

commuters

use public

transport

Public

transport

services

are

reduced


Economy Society Environment Sustainability

Transport HealthClimate Change

Active Transport

Reduced car use

More physical activity

Less fossil fuel use

Local environmental sustainability

Community vitality

Better accessibilityLess congestion

Lower cost transport

Improved physical and mental health

Improved educational outcomes

Economic robustness

Global Environmental sustainability

Active Transport in Context


Active Transport

Strategy/Actions

Effectiveness

Change in active

transportChange in car use

Benefit values for

active transport

Benefit values for

car use

Net benefit of change

in active transport

Accrual period for

outcomes

Durability of transport

activity change

Changing real values

over time

Time series of

benefits


Benefits of Active Transport

Reduced car traffic Vehicle operating costs

Congestion

Roadway cost savings

Parking cost savings

Road Trauma

Emissions Air pollution

Greenhouse and climate change

Increased physical activity Health and fitness

Mortality

Morbidity/Well-Being

Mental health

Education and learning

Social/Community Improved accessibility

Reduced traffic barriers

Equity

Option value


Source: Ker I, Fishman E, Garrard J, Litman T (2011). Cost and Health Benefit of Active Transport in Queensland: Research and Review, Stage One Report. Prepared by CATALYST for Health Promotion Queensland.

Benefits of Active Transport Per 1000 annual reduction in car-km of travel


Behavioural programs

Household - $75 to $100 per household

School - $25,000 per primary school

Workplace – up to $200/employee upfront and up to $300/per employee ongoing – but highly variable

Infrastructure – Cycling

Off-road path - $120,000 to $600,000 per kilometre

On-road cycle lane - $200,000 per kilometre (both sides of street)

Bicycle parking - $300 per rack (parks two bikes)

Infrastructure – Walking

Should be integral part of urban development

Zebra crossing - $5,000 to $10,000

Costs of Active Transport


Behavioural programs

Household – from 13:1 to 75:1 North Brisbane from 24:1 to 40:1 depending on how much additional public

transport capacity required

School – from 3:1 to 6:1 for school trips only

Workplace – up to 35:1 (4.5:1 in WA, with very low health value) Sufficient to attract business to participate in programs – workplace travel

planning benefit calculator for Victorian DoI and AGO

Infrastructure – Cycling

Typically from 3:1 to 5:1

Greater with complete and connected networks

Even high-cost projects, which are usually in areas of high demand

Infrastructure – Walking

Benefits from $4,000 to $7,000 for 1000km walking per year including health benefits

Returns on Investment in Active Transport


Strategic Alignment

Health

Transport

Environment

Education

Planning

Energy

Beyond Benefit-Cost Analysis

Stakeholder Benefits Individual/Household

Financial Transport Health

Time?

Public Sector Finances Transport system costs Health system costs GST revenues


Financial Impacts Transport costs

12-16 cents/km for smallest cars

18-19 cents/km for Falcon or Commodore

GST Revenues GST on fuel returned to States

Queensland receives about 10% less (increasing to 16% by 2013/4)than it contributes for other GST revenues.

Funding of health services Federal Government: 44%

State/Territory Gov’t: 24%

Private (inc. insurance): 32%


Source: Ker I, Fishman E, Garrard J, Litman T (2011). Cost and Health Benefit of Active Transport in Queensland: Research and Review, Stage Two Report. Prepared by CATALYST for Health Promotion Queensland.

Financial Benefits of Active TransportPer 1000km annual reduction in car travel


Speed = Distance/Travel Time

Effective Speed = Distance/(Travel Time + Earning Time*)

Time and Effective Speed

* ‘Earning time’ is the hours that need to be worked to earn the money to pay the financial costs of the travel.

Source: Tranter, P and Ker, I R (2007). A Wish Called $quander: (In)Effective Speed and Effective Wellbeing in Australian Cities. Proceedings of the State of Australian Cities Conference, November 2007: Adelaide, South Australia.http://archive.oxha.org/knowledge/publications/TranterKer_Wishcalledsquander.pdf

Note:

Total time for cycling (or walking) may be even less (ie effective speed is higher) where active travel is substituted for other physical activity, such as going to the gym.


Independent mobility for those without cars

Options for those who do have cars

Better health Individual and community well-being

Government and private financial costs

Improved productivity

Lower-cost transport Car operating costs

Congestion costs

Reduced environmental impact

More livable towns and cities

More robust towns and cities Transport energy – price and availability

Activity centres less dependent on motor vehicles

What Does Active Transport Offer?


The Bottom Line

The benefits of active transport go way beyond transport Health

Environment

Education

Social inclusion

Urban development

The benefits greatly exceed the costs Especially if infrastructure provided up-front rather than as retrofit

There are very few negatives

It is possible to get people to use active transport Behavioural programs

Infrastructure

People like to be able to walk and cycle Overwhelmingly positive responses to active transport initiatives

The economics of active transport in Queensland

Technology

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