Subsidised cycling

by frog

The Freakonomics blog not is just a quirky read but also quite often says things that if a Green frog were to say them might be dismissed as the ravings of a watermelon commie hippie, but are actually the observations of trained economists.  So this week we have:

My Dutch co-author and I biked to his office this morning, with very nice new bikes he owns. I remarked on them, and he said his university gives him the right to buy a bike out of pre-tax income every three years.

Every Dutch employer can offer this triennial subsidy of $750. I thought that was quite interesting, and asked why.

The answer is that earlier the government gave employees a subsidy on commuting costs, but only if they lived at least 10 kilometers from work. He says the government realized that this was unfair to short-distance commuters and, worse still, increased incentives to live far from work and to use gasoline that generated air pollution.

Cycling in Haarlemmermeer

Photo Credit: LeeLeFever

 

frog says

Published in Economy, Work, & Welfare | Environment & Resource Management by frog on Fri, June 6th, 2008   

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