The Economics of Bike Commuting

Fred Schindler

few years ago, some of my colleagues started commuting to

work on their bicycles. Eventually, I realized that some of them
were riding longer distances than my
commute would be, and I decided to
give it a try. The first ride was difficult and took quite a bit of time.
But I kept at it and came to enjoy
it. Ive been commuting by bike
two or three days a week for the
past four years. These long rides
give me plenty of time to ponder
things, and one of the things Ive
pondered is if it makes economic
sense to commute by bicycle. On
the surface, it seems like a straightforward question. But the more
you think about it, the more complicated it becomes.
Lets start with some background
parameters. My commute by automobile is 31 km (19 mi), mostly on major
highways in the Boston area. I cant
take the same highways by bicycle and
wouldnt want to. By bicycle, I take

Fred Schindler (m.schindler@ieee.org)

is with RF Micro Devices,
Billerica, Massachusetts

back roads and even a stretch of a bicycle path, and my route is actually more
direct. Its about 26 km (16 mi). Living in New England, the weather isnt
always conducive to bicycling. There
are some hard-core cyclists that have

STOCKBYTE

studded snow tires for the winter. I do

not. I will ride when the temperature is
as low as 9 C (15 F) but not in the
snow. I also avoid riding in the rain. In
the end, I commute by bike about 38%
of the time, so I need a car for the rest
of the time. Presumably, biking some
days will let my car last longer and
reduce my maintenance costs. And I
save money on gas. Lets start looking
at specific costs.

Equipment Cost
Digital Object Identifier 10.1109/MMM.2012.2197139
Date of publication: 11 July 2012

12

Rather than get into the detailed costs

of operating a car, Ill use a lumped

sum. The American Automobile Association currently estimates the allinclusive average cost of operating
an automobile in the United States at
US$0.363/km (US$0.585/mi). The U.S.
Internal Revenue Service allows a cost
of US$0.34/km (US$0.55/mi) for
tax purposes. I dont have a large
or fancy car, so lets use US$0.31/
km (US$0.50/mi) for my cost. I
dont pay any tolls on my drive
to work, so that means that the
cost for me to commute by car is
US$19.00/day. Thats a surprisingly high figure.
There is no easy way to calculate the cost of operating a bicycle,
so well have to do it item by item.
After commuting on my old, runof-the-mill bike for a year, I decided to
buy a nice road bike. It is a little more
comfortable than my old bike was
and quite a bit faster. I paid close to
US$1,500 for the bike plus some accessories. If well maintained, the bike
should easily last ten years. There
are also maintenance costs. I like to
have a professional look it over once
a year. There are also components
that wear outtires, tubes, chairs,
gears, bearings, brakes, etc. Ive
spent about US$1,200 maintaining
my bike over the past three years, or
about US$400/year. Ive also bought

July/August 2012

after I ride my bike, once when I get to

work and once when I get home. On
days when I drive my car, I still have to
shower and get dressed once, so there
is a net increase of once per day. Lets
say that takes 15 min, making the difference between car and bike about 1:05
per day.
Before I started commuting by
bike, I would go running for exercise, also two to three times per
week. Usually I would do this during
lunch break at work. It would take me
about an hour to run, shower, and get
dressed. I now get quite a bit more
exercise by biking instead of running. Accounting for the time I no
longer spend running, I have a net
time penalty of 5 min.
Fuel
But there is one more consideration.
The fuel cost for an automobile is included in the lumped sum mileage The commute by car is not predictable. In normal concost of US$0.31/km
ditions, it takes me
(US$0.50/mi). A bike
Time is money,
30 min. On the very
doesnt use any fuel.
and it takes
best of days, it can take
But I do. There is no
question that I am quite
longer to pedal a only 25 min (a rarity).
bad days, it can
a bit hungrier and I eat
bike than to drive On
take 45 min or even
quite a bit more food
a car. On a good as much as an hour. I
when I ride my bike. I
havent kept a tally of
day, my commute havent calculated the
average time, but I suswhat I eat every day,
by car takes
pect 35 min is a good
so Ill have to make an
about 30 min.
estimate. The commute
estimate. The cost is
modest. I dont go out
My commute by by bike is much more
Traffic is
and have an extra resbike takes about predictable.
not much of an issue.
taurant meal. But I will
55 min.
Weather (wind and
have larger servings
temperature) can have
and eat some snacks on
days I bike. Im sure the amount I con- an effect, as can how I feel. But unless I
sume and what it costs varies quite a bit have an equipment failure, the range is
from day to day. Some days, coworkers between 49 and 58 min. I maintain my
bring in leftover treats from home, and bike well and use very good tires (see
I can partake heartily for free! My best Surprised Bike Maintenance Costs So
guess is that on average I consume an Much?) so equipment failures are rare.
In the end, there isnt a significant
additional US$3.00 of food and drink
per day I commute. Add that to the time impact on my life if I commute by
equipment cost, and we are now up to a bike instead of by car. This is largely
because it allows me to dispense with
total of US$10.20/day commuting.
running for exercise.
additional accessories and upgrades
lights, gloves, helmets, bike clothing,
new handlebars, etc. That has totaled
about US$750 over the past three
years, but much of it is for items with
a usable life longer than three years,
so lets estimate the annual cost at
US$125.
If we amortize the cost of my bike
over ten years and add the annual
cost of maintenance and accessories, it
comes to US$675/year. Ive managed to
ride close to 4,850 km (3,000 mi) each
of the last three years, so the cost is
US$0.14/km (US$0.225). That makes
my equipment cost US$7.20/day for
commuting by bike.

Time

Time is money, and it takes longer to

pedal a bike than to drive a car. On a
good day, my commute by car takes
about 30 min. My commute by bike
takes about 55 min. Thats a 25 min
difference per trip, or 50 min per day.
I also need to shower and get changed

14

Health
Health and medical expenses are a
tricky area. Certainly, riding this much
on a bike has improved my healthmy
weight has decreased, my cholesterol is
lower, my heart rate has come down,
as well as my blood pressure. These

July/August 2012

Surprised Bike Maintenance Costs So Much?

Casual bike riders tend to think of a bike as something that
requires little or no maintenanceall you have to do pump
up the tires and oil the chain from time to time. Once you
start riding thousands of kilometers (or miles) you realize
that its not so simplelots of things can and do wear out.
Tires
Tires can be bought for as little as $US10 each, and thats
probably what the tires that come with a bike are worth.
But after commuting for a few months, you come to
realize that its worth spending more on low-resistance
and puncture-resistant tires. Before I bought punctureresistant tires, I averaged a flat every 300 km (200 miles).
It takes about 20 min to replace a tube (10 min if you get
really proficient). Good puncture-resistant tires cost about
US$50 each. A good set of tires lasts about 5,000 km
(about 3,000 mi), so, about a year for me. At 5,000 km
(3,000 miles), the tread of the rear tire is mostly worn way
at the center, and the sidewalls show wear. You can ride
longer, but cornering performance decreases and there is
an increased risk of flats. The front tire wears much more
slowly, so switching tires front to back can extend the
useful life. (Send me an e-mail if you want my views on
the performance of different tire brands.) My annual cost
for tires has been US$100 (though I could reduce it to as
little as US$60 by using the tires longer).
Chains
Chains wear out. Its called chain stretch, but its really
wear in the bushings and pins that hold the links together.
A well-maintained chain (which means frequent cleaning
and careful lubrication) lasts about 5,000 km (3,000 mi).
A poorly maintained chain will only last a third that
distance. What happens when a chain wears out? The
chain will no longer mesh properly with the sprockets
(gears) and will occasional miss or skip. Eventually, it
becomes unridable. A good chain costs US$30 (though its
possible to spend more than three times that). My annual
cost for chains is US$30.
Cassettes
The cassette is the collection of sprockets on the rear
wheel. These also wear out. A worn chain will reduce the
life of the cassette. Many people recommend changing
the cassette whenever you change the chain. Ive been
able to get two chain lives from my cassette. A good
cassette costs US$70, though its possible to spend
US$400. My annual cost for the cassette is US$35.
Brake Pads
I manage to wear out a set of brake pads about once a
year. My annual cost is US$10.
Cables
There are cables that control the brakes and the shifting
mechanisms. Ive had one fail per year. Though a cable

18

only costs about US$15, mine have always failed at

inopportune times, so its been most expedient to have a
bike shop replace them for about US$50. My annual cost
is US$50.
Bottom Bracket
The bottom bracket is that part of the frame that the
pedals crank around. Its also the name for the bearings
for the crank. As you can image, they get a fair amount
of wear. Mine lasted about 8,000 km (5,000 mi), though
I suspect they would have gone longer it Id been more
careful maintaining them. A good bottom bracket costs
US$75, and Ill set my annual cost at US$30.
Wheels
Wheels dont generally wear out, though they can
be damaged by a large hole in the pavement and by
neglect. The spokes need to be checked and tightened
as necessary to keep the wheel in true. Then there
are the bearings in the hubs. The rear bearing gets
considerable wear. Mine started to fail at about 10,000 km
(about 6,000 mi). The labor of replacing a bearing is
considerable, and the original wheel on my bike was of
modest quality, so I opted to replace the entire rear wheel
for US$120. My annual cost is US$60.
Tune-Up
My local bike shop will give the bike a thorough once-over
for US$70. This included adjusting everything as required,
including the spokes. It costs more if anything needs to be
replaced. My annual cost is US$70.
Cleaners and Lubricants
I use a solvent to clean the chain about every 300 km
(200 mi). I also have oils for the chain and the various
bearings. My annual cost is US$40.
This brings my total annual maintenance cost to
US$420. Ive dropped this to US$400 for my cost per
commute calculation because I believe some of my
replacement parts will last longer than the original parts,
and I can make my tires last longer. Of course there are
a number of parts that can wear out that I have not yet
replaced, so I dont really know what theyll contribute
to by annual cost. This includes: the pedals, since they
have bearings (US$35); the front wheel (US$120); the
crankset (US$150); the rear derailleur (US$80); and
the front derailleur (US$20). There are other parts of
the bike I can imagine wearing out, including the seat
(US$80), the bar tape (US$20), and the shifter/brake
levers (US$280). My bike frame is mostly aluminum with
a few pieces of carbon fiber. It all looks very solid after
about 15,000 km (about 9,000 mi), but I wonder if it
may eventually show signs of fatigue. Considering all this,
US$400 per year is a good low estimate for my longterm maintenance costs.

July/August 2012

should all be good things for my long- print between biking and driving a
term health, but I have no good way to car. I suspect there is a significant carmonetize this. In the long run, I should bon impact from manufacturing my
save on my medical costs, but how car, as well as a smaller impact from
much? Besides, most of the saving will manufacturing my bike. Since I would
go to my medical insurance provider. own my car regardless of my biking, I
I may also live longer, but there is no think we can ignore the manufacturgood way to estimate how much longer ing impact. That mostly leaves fuel
to consider. My car uses about 5 L
and how valuable that will be.
There is also a downside. Bike rid- (1.3 gal) of gasoline per day I commute.
ers have accidents. They are rarely life According to Wikipedia, combustion
threatening, but there can be signifi- of gasoline releases 2.3 kg/L of CO2
cant trauma. I have a neighbor that (8.8 kg/gal), so my daily commute rehas been commuting by bike for about leases 11.5 kg of CO2.
30 years. He has had two major acciThe calculation for bike commuting
dents involving cars where hes needed is more difficult. Ive tried a wide range
surgery. In my limited
of tools to try to estitime riding, Ive had
mate how much energy
There is also
one accident. I manI burn per day comaged to do so without
muting by bike, and
the impact of
anyone elses help.
the results vary wildly.
the economics
I turned too fast on
A good median result is
and politics of
a patch of sand and
that I use about an adfell very hard on my
ditional 1,000 calories
energy.
side. I ended up with
(more correctly 1,000
a nasty clavicle fracture that required kcal) per day I bike. Assuming I replensurgery and a couple of cracked ribs. I ish that with food, we need to figure
dont know what the total cost was; my out how much CO2 1,000 calories of
insurance company paid most of it. My food contributes. Here again, there are
share was in the hundreds of dollars.
wildly varying estimates for the carThere are also potential chronic is- bon released by making food. It varies
sues from bike riding. Generally, riding depending on the way the calculation
a bike does not cause difficulty in the is done and on the food. In the end, I
joints or the back, but heavy usage can al- decided to simply average the results
ways be an issue. My knees used to both- for a wide range of foods (ranging from
er me quite a bit when I ran for exercise, 1.1 to 8.9 kg per 1,000 calories) giving a
but now they dont. But now one of my result of 5.3 kg per day I bike. If I was
hip joints tends to get mildly irritated. a vegan, apparently I could cut that
The worst impact can be on the wrists in half.
and the hands. There can be quite a bit
There is also the impact of the ecoof pressure on the hands, though a good nomics and politics of energy. In the
bike fitting will minimize that. Road vi- United States, most of our petroleum
brations are telegraphed up to the hands comes from Canada. That means I am
from the front wheel through the han- supporting that hockey-obsessed land
dlebar and can cause problems similar to of the north when I drive! Seriously,
repetitive use syndrome (carpal tunnel). the petroleum market is global, and
Good gloves, handlebar, padding, and many of the major petroleum exportbar tape can minimize this.
ing counties have political agendas Im
So in the end, it is difficult to quan- not fond of, so I do think reducing the
tify the health benefits and liabilities of gasoline I consume is a good thing.
bike riding. I think its fair to say they Of course, a fair amount of the petrooffset each other and the net impact on leum I save by not driving goes into the
cost is close to zero.
petroleum used to produce of the food
I consume, but overall there is a modest net savings.
Other Stuff
I thought it would be interesting to
(continued on page 32)
look at the difference in carbon foot-

20

July/August 2012

first message transmitted repeatedly

was the binary-coded word NEUTRINO. The data received consisted
of 3,454 records spanning an interval of
142 min. An overall data rate of about
0.1 Hz was realized, with an error rate
of less than 1% for transmission of neutrinos through a few hundred meters
ofrock [1].
Such neutrino-based communication
systems have been proposed (but not
demonstrated) for electromagnetically
challenging environments such as a scenario involving a submerged submarine
[5]. Of course, a neutrino detector will
have to shrink a great deal in weight
before that enters the realm of possibility. But, before we dismiss the concept
of neutrino-based communication itself,
we should think about what happened
to Hedy Lamarr and her invention in
1942 of a frequency-hopping radio-controlled system for guiding torpedoes.
As I described in [6], Hollywood actress

Lamarr and her coinventor George

Antheil (a composer) had proposed a
player-piano mechanism as one possible implementation of the frequencyhopping system. Antheil later wrote In
our patent Hedy and I attempted to better elucidate our mechanism by explaining that certain parts of it worked like
the fundamental mechanism of a player
piano. Here, undoubtedly, we made
our mistake. The reverend and brassheaded gentlemen in Washington who
examined our invention read no further
than the words player piano. My God,
I can see them saying, we shall put a
player piano in a torpedo. In 1962,
three years after the Lamarr-Antheil
patent had expired, ships equipped
with secure military-communication
systems, based on the frequency-hopping technique, were deployed during
the Cuban missile crisis [6]. So, even
neutrino phones may someday see the
light of day.

References
[1] D. Stancil et al., Demonstration of communication using neutrinos, Mod. Phys. Lett. A, vol.
27, no. 4, 2012.
[2] (2012, Apr. 6). ET, phone home, The Economist
[Online]. Available: http://www.economist.
com/node/21550242
[3] J. Aron. (2012, Apr. 6). Neutrinos send wireless message through the earth, New Scientist
[Online]. Available: http://www.newscientist.
com/blogs/shortsharpscience/2012/03/
neutrinos-send-wireless-messag.html
[4] R. Boyle. (2012, Apr. 6). For the first time, a message sent with neutrinos, Popular Sci. [Online].
Available: http://www.popsci.com/science/
article/2012-03/first-time-neutrinos-sendmessage-through-bedrock
[5] J. Hsu. (2012, Apr. 6). Neutrinos may someday
provide high-speed submarine communication, Popular Sci. [Online]. Available: http://
www.popsci.com/military-aviation-ampspace/article/2009-10/neutrinos-may-someday-provide-high-speed-submarine-communication
[6] R. Bansal, He(a)dy stuff, IEEE Antennas Propagat. Mag., vol. 39, no. 3, p. 100, June 1997.

MicroBusiness (continued from page 20)

We already went over health and really be interested in doing much more
medical costs. How about more general for the day. Now that its become part
of my routine, I dont
well-being? I ride on
think that is much
roads with cars and
Based on
of an impact. I have
trucks. Do I feel nerplenty of energy to
vous and endangered?
the various
do whatever I want in
Actually not. For the
comparisons
the evening.
most part, I find drivIve made, it
ers in the Boston area
to be very considerate
Summing Up
does appear I
of bike riders. It helps
Based on the varicome out even
that there are more bike
ous comparisons Ive
or ahead in
riders every year. There
made, it does appear
are also intangible wellI come out even or
every category.
being effects to consider.
ahead in every catHow does riding a bike 52 km (32 mi) egory. The difference is not as great as
impact the rest of the day? It does help I first imagined. Ive made a bunch of
me sleep well! How about fatigue? estimates and approximations, so we
When I first started bike commuting I dont really know the actual cost. The
would be exhausted when I returned US$0.31/km (US$0.50/mi) estimated
home in the evening, and wouldnt cost of operating a car is all inclusive,

32

but many of those costs hold even if I

reduce the distance I drive the car every year. The other extreme is to only
consider the incremental cost, which
comes down to fuel expense. Fuel costs
have varied quite a bit over the past
few years. As I write this, gasoline cost
is approaching US$1.06/L (US$4.00/
gal). That makes the incremental cost
for me to commute by car per day about
US$5.25. If the cost of the added food I
consume per day is US$3.00, it still looks
like an advantage to commute by bike.
Of course, I dont really ride my bike
to work for economic reasons. I do it
because I enjoy it. I spend an additional
two hours outdoors, mostly on nice
days, and I stay quite fit. I notice more
and more people riding their bikes
early in the morning and evenings, so
I dont think Im alone.

July/August 2012