Tools- of Changes

Cost-Effectiveness of Electric Bicycle Incentives for Greenhouse Gas Mitigation

This study investigated the travel behaviour and greenhouse gas (GHG) impacts of an electric bicycle (e-bike) purchase incentive program in Saanich, British Columbia, Canada. The marginal and non-marginal GHG abatement costs were CA$722 and CA$190 per tonne CO2e, respectively, which is cost-competitive with other types of transportation subsidies, but not the international carbon market.

The researchers distributed purchase rebates in three tiers based on household income. A panel of 402 study participants (including a control group) was surveyed in three waves.

• The researchers found that 23 % to 76 % would not have purchased an e-bike without the rebate, increasing with rebate amount, and that the purchased e-bikes were used regularly.
• Larger, income-based incentives were associated with higher pre-purchase automobile use and consequently greater post-purchase automobile travel reduction.
• The incentive recipients reduced their GHG from travel by an average of 16 kg CO2e per week one year after purchase, greater for the larger, income-conditioned incentives.
• The marginal and non-marginal GHG abatement costs were CA$722 and CA$190 per tonne CO2e, respectively, which is cost-competitive with other types of transportation subsidies, but not the international carbon market.

Published in January 2025.