Assessing the Economic Impact of Bicycling in Minnesota
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1 Assessing the Economic Impact of Bicycling in Minnesota Xinyi Qian, Ph.D. Tourism Specialist University of Minnesota Tourism Center 1
2 OVERVIEW Funding: Minnesota Department of Transportation Support: Center for Transportation Studies Implementation: U of M 2
3 Research team from University of Minnesota: Principal Investigator: Dr. Xinyi Qian, Tourism Specialist, Tourism Center MnDOT Project Coordinator: Sara Dunlap, MPH, Principal Planner, MnDOT Co-Investigators: Dr. Greg Lindsey, Professor, Humphrey School of Public Affairs Neil Linscheid, Educator, U of M Extension Brigid Tuck, Senior Analyst, U of M Extension Dr. Mark Pereira, Associate Professor, School of Public Health 3
4 PROJECT GOALS Estimate the economic impact of the bicycling industry in MN Estimate the economic impact of bicycling events in MN Examine the health effects and related economic impact of bicycling in Twin Cities Metropolitan Area Estimate volumes of bicycling and use of bicycling infrastructure in MN 4
5 ESTIMATE THE ECONOMIC IMPACT OF BICYCLING INDUSTRY CJ S BIKE SHOP EASY RIDERS ERIK S ST. CLOUD JTEK ENGINEERING PENN CYCLE & FITNESS QUALITY BIKE PRODUCTS ROCHESTER CYCLING 5
6 ESTIMATE THE ECONOMIC IMPACT OF BIKING INDUSTRY Interview of key informants Online survey of bicycling businesses $778 million economic activity in 2014: $617 million from manufacturers & wholesalers $209 million in wages, salaries & benefits 5,519 jobs 6
7 ECONOMIC IMPACT OF BIKING INDUSTRY: IMPLICATIONS Strong bicycle-related manufacturing Specialty bicycle retail stores Local suppliers 7
8 ESTIMATE THE ECONOMIC IMPACT OF BICYCLING EVENTS Online survey of bicycling event attendees IMPLAN 8
9 ESTIMATE THE ECONOMIC IMPACT OF BICYCLING EVENTS $14.3 million economic activity in 2015: $4.6 million in wages, salaries & benefits 150 jobs An estimated 50,212 visitors traveled for bicycling events Average spending per person per day: $121 9
10 ESTIMATE THE ECONOMIC IMPACT OF BICYCLING EVENTS Capture more spending from a captive audience Use events to promote bicycling facilities 10
11 EXAMINE THE HEALTH EFFECTS OF BICYCLE COMMUTING & ITS ECONOMIC IMPACT Economic value of reduced death rate (mortality) 11
12 WHAT IS HEAT? Health Economic Assessment Tool (HEAT): World Health Organization Estimating the economic value of reduced death rate (mortality) due to bicycling or walking (Rutter et al. 2007) HEAT s applicability: NOT for illness rate (morbidity) Habitual behavior at population level year olds NOT for physically active population 12
13 EXAMINE THE HEALTH EFFECTS OF BICYCLE COMMUTING & ITS ECONOMIC VALUE Reduced mortality per year: Prevents deaths Saving $100 million - $500 million 13
14 EXAMINE THE HEALTH EFFECTS OF BICYCLE COMMUTING & ITS ECONOMIC VALUE Promote active transportation via bicycling Safety education Safe bicycling to school Youth s bicycle access 14
15 TO SUMMARIZE Infrastruct ure Industry Education & Promotion Bicycling Health Planning Event/ tourism 15
16 Thank you! Questions & Comments? Xinyi Qian, Ph.D. University of Minnesota Tourism Center
17 INPUT DATA NEEDED TO USE HEAT Number of people who bike commute Average time spent bike commuting Population death rate (i.e., mortality rate) Value of a statistical life (VSL) Period of time for benefits to be calculated A discount rate 17
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