Proposed D.C. E-Bike Subsidy Packs an Economic Punch, Analysis Finds

A proposed rebate on electric bikes in the District would be more cost-effective in reducing gasoline miles driven than electric car subsidies thanks to the higher elasticity of e-bike demand.

2 minute read

January 31, 2023, 6:00 AM PST

By Diana Ionescu @aworkoffiction


Young bearded man with helmet setting up battery on back of electric bike

Ground Picture / Electric bike

According to an article by David Edmondson in Greater Greater Washington, a proposed $400 to $1,200 e-bike subsidy in Washington, D.C. “packs the most pollution-fighting power” compared to other plans to promote the adoption of zero-emission transportation, bringing the biggest return on investment for reducing gasoline miles driven. 

As Edmondson explains, this has to do with the economic concept of elasticity. “[Zero-emission vehicles] are a lot more expensive than e-bikes and, therefore, it takes a lot of money to meaningfully lower the cost of a ZEV compared to an e-bike.” Edmondson used a Canadian model to predict e-bike sales under the new subsidy, predicting a rise of 15 percent in annual sales. “Remarkably, 44% of those sales would go to incentivized buyers who would not have otherwise purchased an e-bike,” Edmondson notes. Most electric car subsidies, on the other hand, tend to be used by people who would already buy electric or hybrid cars. 

While they can’t replace all vehicle trips, e-bikes can have a significant impact on gasoline miles. “When a household buys an e-bike, their driving (as measured by vehicle miles traveled, or VMT) decreases by more than a third,” Edmondson found. “When that is taken into consideration, an e-bike subsidy is 2.9 times more effective per dollar at displacing gasoline miles than a ZEV subsidy.”

Edmondson points out the added benefits of e-bikes, such as better health, easier charging, requiring fewer resources for batteries and putting less strain on city streets, and reduced safety risks for pedestrians and other road users.

Wednesday, January 25, 2023 in Greater Greater Washington

Red on white 'Room for Rent, Inquire Inside' sign

In Most U.S. Cities, Archaic Laws Limit Roommate Living

Critics argue laws preventing unrelated adults from living in the same home fail to understand the modern American household.

May 24, 2023 - The Atlantic

Vancouver Chuck Wolfe

Ten Signs of a Resurgent Downtown

In GeekWire, Chuck Wolfe continues his exploration of a holistic and practical approach to post-pandemic urban center recovery, anchored in local context and community-driven initiatives that promote livability, safety, and sustainability.

May 24, 2023 - GeekWire

New York MTA subway station

Off-Peak is the New On-Peak

Public transit systems in major U.S. cities are starting to focus on non-rush hour travelers as pre-pandemic commuting patterns shift and transportation needs change.

May 19, 2023 - Curbed

Outdoor dining patio built next to a restaurant in Chicago

Chicago Mayor Proposes Permanent Outdoor Dining Program

The mayor’s proposal would create permanent rules for restaurants wanting to continue using their Covid-era outdoor dining setups or build new ones.

1 hour ago - Block Club Chicago

Aerial view of Atlanta BeltLine paved bike trail surrounded by green trees

Trees Beautify Segment of Atlanta’s BeltLine

A local nonprofit planted 500 trees along a previously unimpressive segment of the bike and walking trail, creating an ‘instant forest’ effect.

2 hours ago - Urbanize Atlanta

Line of 18-wheeler trucks on a highway in Tennessee

Biden's Truck Pollution Rule Hanging by a Thread

Four House Democrats joined all but one Republican to enact the Congressional Review Act to roll back President Biden's rule on heavy truck pollution approved by the EPA last December. The Senate had earlier narrowly passed the joint resolution.

3 hours ago - The Hill

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.