estimating the economic impact of the health benefits

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Estimating the Economic Impact of the Health Benefits associated with Bicycle Commuting Xinyi Qian, Ph.D., Tourism Center Aaron Berger, M.S. & Mark Pereira, Ph.D., Department of Epidemiology University of Minnesota 27 th Annual Transportation Research Conference Minneapolis, MN; November 3, 2016

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Page 1: Estimating the Economic Impact of the Health Benefits

Estimating the Economic Impact of the Health Benefits

associated withBicycle Commuting

Xinyi Qian, Ph.D., Tourism Center

Aaron Berger, M.S. & Mark Pereira, Ph.D., Department of Epidemiology

University of Minnesota

27th Annual Transportation Research Conference

Minneapolis, MN; November 3, 2016

Page 2: Estimating the Economic Impact of the Health Benefits

© 2014 Regents of the University of Minnesota. All rights reserved.

THANK YOU:

Co-Investigator: Mark Pereira

Graduate Research Assistant: Aaron Berger

Page 3: Estimating the Economic Impact of the Health Benefits

© 2014 Regents of the University of Minnesota. All rights reserved.

THE LARGER PROJECT

Assessing the economic

impact and health effects

of bicycling in Minnesota

Aug 2014 –Dec 2016

EIA of biking

industry

Volume of biking

infrastructure use

EIA of biking events

Health effects of

bike commuting

Page 4: Estimating the Economic Impact of the Health Benefits

© 2014 Regents of the University of Minnesota. All rights reserved.

WHY SHOULD WE CARE?

Bicycle commuting:

– Sustainable

– Physical activity

– 100 minutes of bicycling per week

10% lower death rate

Page 5: Estimating the Economic Impact of the Health Benefits

© 2014 Regents of the University of Minnesota. All rights reserved.

WHAT DO WE WANT TO KNOW?

What is the economic impact of the public

health benefits from bicycle commuting in

Minnesota?

Page 6: Estimating the Economic Impact of the Health Benefits

© 2014 Regents of the University of Minnesota. All rights reserved.

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

– 20-64 year olds

– NOT for physically active population

Page 7: Estimating the Economic Impact of the Health Benefits

© 2014 Regents of the University of Minnesota. All rights reserved.

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

Page 8: Estimating the Economic Impact of the Health Benefits

© 2014 Regents of the University of Minnesota. All rights reserved.

WHERE WE COLLECTED INPUT DATA

Twin Cities

Metro Area

Page 9: Estimating the Economic Impact of the Health Benefits

© 2014 Regents of the University of Minnesota. All rights reserved.

HOW WE COLLECTED INPUT DATA

2014 Minnesota

State Survey#days bike

commuting in warm months

#days bike commuting in cold months

Miles they ride each way

Responses weighed by:

– County

– Age group

– Gender

– Employment

Page 10: Estimating the Economic Impact of the Health Benefits

© 2014 Regents of the University of Minnesota. All rights reserved.

FINDINGS (1)Number of people who bike commute:

244,000 working age metro residents (95% CI: 171,000-318,000)

Average distance of bike commuting:

366 miles per year (95% CI: 218-613)

Population death rate (i.e., mortality rate):

234.1 per 100,000 per year (DOH)

Value of a statistical life (VSL):

$9.4 million (MNDOT)

Period of time for benefits to be calculated:

annually

A discount rate:

1.7% (MNDOT)

Page 11: Estimating the Economic Impact of the Health Benefits

© 2014 Regents of the University of Minnesota. All rights reserved.

FINDINGS (2)

Scenario

Number

of

cyclists

Miles per

cyclist-

year

Annual

deaths

prevented

Current annual

value

Low 171,000 218 12 $108,805,000

Average 244,000 366 28 $ 260,657,000

High 318,000 613 61 $568,965,000

Results of HEAT under low, average, and high

estimate of bicycling prevalence and distance

Page 12: Estimating the Economic Impact of the Health Benefits

© 2014 Regents of the University of Minnesota. All rights reserved.

WHAT DO THE FINDINGS MEAN?

Among the first in the U.S.

Finding consistent with earlier European &

Asian research

Comparison across time & location

Demonstrate economic & public health

value of bicycle commuting

Page 13: Estimating the Economic Impact of the Health Benefits

© 2014 Regents of the University of Minnesota. All rights reserved.

POLICY IMPLICATIONS

Promote active commuting via

bicycling

Safety education

What about our youth

Page 14: Estimating the Economic Impact of the Health Benefits

© 2014 Regents of the University of Minnesota. All rights reserved.

Thank you!Questions & Comments?

Xinyi Qian, Ph.D.,

University of Minnesota Tourism Center

[email protected], 612-625-5668