Bike-friendly cities: an opportunity for local businesses? Evidence from the city of Paris

Federica Daniele, Mariona Segú, David Bounie and Youssouf Camara ()
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Youssouf Camara: Université de Cergy-Pontoise, THEMA

No 2022-09, THEMA Working Papers from THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise

Abstract: Cities are increasingly interested in developing cycling infrastructure. Yet, little is known about the (potentially heterogeneous) economic impact of such investments. We evaluate the economic impact of a large-scale cycling infrastructure investment in Paris, the Plan V´elo. Using geolocated data covering nearly the universe of French card transactions we estimate a positive and statistically significant elasticity of local revenues to bike market access. We find a larger elasticity in areas with smaller and younger establishments. The project increased the non-tradables consumption share of central/less densely populated neighborhoods at the disadvantage of peripheral/more densely populated ones.

Keywords: cities; cycling; infrastructure investment; local economic activity (search for similar items in EconPapers)
JEL-codes: D12 L81 L83 R2 R4 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-ene and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ema:worpap:2022-09

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