Exploring the Impacts of Electric Bicycle Rebates on Car Travel and Emissions

Electric bicycle rebate programs have gained significant popularity in North America, with the aim of encouraging people to choose healthier and more sustainable transportation options. However, the full extent of the impact of these incentives is not well understood. Are new cycling habits sustainable? Who benefits the most from these programs? And are they worth the investment?

To shed light on these questions, researchers at UBC’s Research on Active Transportation (REACT) Lab conducted a study focusing on an e-bike incentive program offered by the District of Saanich, B.C. The findings reveal intriguing insights into the effectiveness of these rebate programs.

The Saanich program, implemented between 2021 and 2022, offered three different rebates based on income levels, ranging from $350 to a maximum of $1,600. The results of the study showed a remarkable surge in e-bike adoption, with 93 percent of participants being new to e-bikes, and 60 percent new to cycling altogether.

Importantly, the study revealed that most new e-bike users continued to use their bikes regularly as a substitute for car travel even a year after their purchase. On average, these individuals integrated e-bikes into their routines three to four days a week, resulting in a significant reduction of car travel by approximately 30-40 percent, or an average of 48 kilometers per week.

Furthermore, the incentives had the greatest impact on low-income households, who reduced their car trips and carbon emissions the most. Among those who received the highest incentive of $1,600, a staggering eight out of 10 individuals would not have purchased an e-bike without it.

The study also demonstrated that e-bike incentives are a cost-effective way of reducing carbon emissions. Users of the Saanich program reduced their travel-related greenhouse gas emissions by an average of 16 kilograms of CO2 per week, one year after purchasing their e-bikes. Remarkably, those who received the highest incentives achieved the most significant reductions in both car use and carbon emissions.

Contrary to common criticism, the study found that e-bike incentives are competitive with other transportation subsidies in Canada. The cost of the Saanich program translated to approximately $190 to $720 per tonne of GHG emissions, making it a cost-effective option when compared to electric car incentives.

Continuing their research, the REACT Lab has partnered with the Province of B.C. and other researchers to study the provincewide e-bike incentive program. This expanded investigation will consider factors such as variations in climate, terrain, and the availability of safe cycling routes to gain a more comprehensive understanding of the influences on e-bike adoption and its impacts.

The findings of this study provide valuable insights into the effectiveness of electric bicycle rebate programs. By reducing car travel and carbon emissions, especially among low-income households, these incentives prove to be both sustainable and cost-effective solutions for promoting greener transportation alternatives.

The electric bicycle industry has experienced significant growth in recent years, driven by increased interest in healthier and more sustainable transportation options. According to market forecasts, the global electric bicycle market is expected to reach a value of $21.24 billion by 2023, growing at a CAGR of 6.39% during the forecast period.

One of the factors contributing to this growth is the implementation of electric bicycle rebate programs. These programs, like the one studied by UBC’s REACT Lab, aim to encourage individuals to choose e-bikes as a substitute for car travel. The success of these programs is evident in the findings of the Saanich program, which saw a surge in e-bike adoption, with a majority of participants being new to e-bikes and cycling.

The study also highlighted the sustainability of new cycling habits formed through the incentive program. Data showed that most e-bike users continued to use their bikes regularly as a substitute for cars even a year after their purchase. This sustained behavior change resulted in a significant reduction in car travel and subsequent carbon emissions.

In particular, low-income households benefited the most from the e-bike incentives, reducing their car trips and carbon emissions the most. The highest incentive offered by the Saanich program played a crucial role in enabling eight out of 10 individuals to afford an e-bike. This finding emphasized the importance of targeted incentives to make sustainable transportation options accessible to all.

The cost-effectiveness of e-bike incentives was another significant finding of the study. Contrary to common criticism, the cost of the Saanich program was comparable to other transportation subsidies in Canada. The cost per tonne of greenhouse gas emissions reduced through the program was relatively low, making it an attractive option when compared to electric car incentives.

Looking ahead, the REACT Lab’s partnership with the Province of B.C. and other researchers to study the provincewide e-bike incentive program will provide a more comprehensive understanding of the impacts of these programs. Factors such as climate, terrain, and the availability of safe cycling routes are expected to influence e-bike adoption, and this expanded investigation will shed light on these influences.

In conclusion, the research conducted by UBC’s REACT Lab demonstrates the effectiveness of electric bicycle rebate programs in promoting greener transportation alternatives. These programs not only encourage individuals to adopt e-bikes but also contribute to a reduction in car travel and carbon emissions. With a focus on low-income households and their specific needs, these incentives prove to be both sustainable and cost-effective solutions in the transition towards a greener future.

Sources:
Market Forecast: Electric Bicycle Market