MEASURING THE EFFECTS OF A KILOMETRIC ALLOWANCE FOR CYCLING COMMUTERS Christian GIORIA, Consultant, INDDIGO

CONTEXT Actual Fiscal scheme for cycling No obligatory or facultative cycling reimbursement scheme in France Only the costs of subscriptions to public bike hiring systems can be reimbursed (50% min.)  fiscal incentives for home-work travel mainly concentrate on car use 2014 : A new national scheme for active mobilities including project pilot for kilometric allowance for cycling commuters Few elements to unterstand the context of the cycling kilometric allowance

CONTEXT We started an evaluation with two objectives Experimentation with selected companies (volunteer programme) 18 companies Around 10 000 employees Objective : Convince the government to approve this measure We started an evaluation with two objectives

CALENDAR April to June 2014 : Companies selection (only private sector) June to December 2014 : Experimentation June 2014 : all employees survey October : Survey nearby those who had an allowance A first one to understand travel habits and test the volunteers to participate A second survey to evaluate the impacts of the experimentations on health, modal splits and environment

TECHNICAL AND FISCAL SPECIFICATIONS A mileage allowance at the level of 0.25 € / km Including in the current fiscal regime with tax and social security contributions (for companies and employees)  Reimbusement to 0.25 € / km for employees to 0.43 € / km with real costs This value is including

TECHNICAL AND FISCAL SPECIFICATIONS No mode-neutral solutions or « Mobility Budget » Employees have to make a choice between Reimbursement at least 50% of the costs for public transport subscriptions Or kilometric allowance for cycling commuters The travels for commuting made with a bike shared system (or a public bike) are excluded Companies can choose a mensual limit Generally situed between 35 € et 50 € a month In coherence with public transport reimbursement No mode neutral solutions… that is to say

WHY THIS EVALUATION And now, why this evaluation ? Feedback about Impacts on modal share Impacts on health What about new cyclists ? And now, why this evaluation ?

MAIN RESULTS – Modal share impact BEFORE DECEMBER Cyclists 200 419 Cyclists (including frequencies of use) 176 296 MODAL SHARE 2% 3.6% People who are already cyclist cycling more than the new one The second line includ frequencies of use Growth of 70% of modal share but 5 to 8% cycling for other reasons (summer, …) 10% stop the practice during the test  50% growth

MAIN RESULTS - Modal share impact To estimate bicycle modal share, necessity to take into account the level of use / frequencies during the week Less 1 or 2 times a week 3 or 4 times a week Every day Already Cyclists New Cyclists

MAIN RESULTS - Modal share impact Increase of cycling for others purposes (shopping, leisure, …) Already Cyclists New Cyclists New cyclists practice too for other purposes : 30 % of the new cyclist use their bike for other purposes since the experimentation NO YES YES, but not linked with kilometric allowance

MAIN RESULTS - Modal share impact Where are the new cyclists coming from ?

MAIN RESULTS - PROFILES New Cyclists Strong attractiveness nearby Men and between 26 and 55 years old Already Cyclists Men public Women public

MAIN RESULTS – New Advantages of cycling New Cyclists Already Cyclists People who are already cyclist use their bike because it is Health Recreation Environment Economic Convenient Fast No stress

MAIN RESULTS – SOME REASONS TO USE OTHERS MODES Already Cyclists New Cyclists Weather We said that new cyclist don’t use their bike often. With this graph we have some reasons as the weather for the main reason or the program of the day for people already cycling The fiscal scheme seems to be important for new cyclist beaucse 15% of them stop cycling when they touch the top of the mensual reimbursement According to my work program Detour Problems on my bike Change of time table Mood Charge Top of the reimbursement

MAIN RESULTS – URBAN DIFFERENCES Less impact in big cities (Lyon / Paris) because of using public transport for others purposes  Ile de France : growth of 10% (average of 50%) At the opposite, in small places (under 100 000 inhabitants area)  Growth of 70%

MAIN RESULTS – HEALTH IMPACT Estimated with Ricci et Gagnon test Objective : Measure all activity for commuting travel Activities for other purposes of travel Others activities Good enough Physical activity Not Good enough A test used by the world health organization. Ricci and Gagnon are from the montreal univerity Activities for other purposes Others activities (sportiv or physical activites as gardening) Before After

MAIN RESULTS – ECONOMIC IMPACT New Cyclists Already Cyclists Perform my cyclist equipment (clothes for winter, raincoat, …) Repair my bike I don’t know Integration in my general budget Buy a new bicycle A last question : How do the beneficiaries want to use their money

NEXT STEP Currently Some companies follow the experimentation The others wait for the governement decision Following of the evaluation New survey in June 2015 (What’s new after 1 year all seasons included ?) Focus group with employees Analysis of other factors Car park facilities Impact of reimbursements of car use 8 companies follow (in the actual fiscal scheme with social cotisations for companies and tax for employees

Qualitative impacts Qualitative impacts Some difficulties for all companies to prepare the evaluation (because of they have to put in the current fiscal scheme)  allowance included in the pay statement All companies agreed with the 0.25 € / km provided that the future allowance become tax-free Declarative system (paper, Excel, expensive invoices) with no mistakes observed Pay statement (bulletin de paie) For the last point : on board technology to control home-work travel.

THANKS FOR YOUR ATTENTION Christian GIORIA Mail : c.gioria@inddigo.com 0033 4 95 09 38 90 INDDIGO : Velo-city Nantes coordinator