Economics and Bicycling in Arizona  

 As people involved in bicycle advocacy, we often hear people who don’t support active transportation talking about bicycle infrastructure as if it adds no value or creates some sort of burden on our communities.  

This article provides responses to some of those statements.   

 

Statement: Building roadway infrastructure for people who don’t drive is too expensive. 

Response: Building sidewalks and bicycle lanes is less expensive than building lanes for motorized traffic. [i] On streets with lower speed limits, bicycle lanes can be added or widened at no additional cost when done as part of a routine restriping project. [ii] Even the addition of a separated bicycle lane costs less than a traffic lane for motor vehicles. [iii]  

Better infrastructure for people that don’t drive cars has been shown to reduce crashes for all road users. [iv] And less crashes means less crash related expenses; such as emergency service response costs, medical costs, roadway and vehicle repair costs, and insurance rates. [v] Looking at all these costs together and not just the cost of the infrastructure itself, shows that building safer bicycle infrastructure can reduce crashes for all road users and save communities money. 

In 2019 there were 36,500 people killed, 4.5 million people injured, and 23 million vehicles damaged in motor vehicle crashes in the United States. The economic costs of these crashes totaled $340 billion, including lost productivity, medical, legal and court costs, emergency service, insurance administration, congestion, property damage, and workplace losses. We all share this cost through tax payments to support emergency and medical services, and higher medical and auto insurance premiums. [vi]  

When quality-of-life valuations are considered, the total value of societal harm from motor vehicle crashes in the United States in 2019 was nearly $1.4 trillion. [vii]  

 If better bicycle infrastructure was built on our roadways,  

it would reduce the number and severity of crashes for all road users   

and  

the reduced the cost of crashes could offset the cost of the bicycle infrastructure. [viii, ix, x] 

 

 

 

Statement: People who ride bicycles don’t pay for the roadways, so we shouldn’t build infrastructure for them.  

Response: People who ride bicycles do pay for roadways. [xi] A large portion of the cost of local, county, regional, state and federal roadways is paid through general taxes, which all taxpayers pay regardless of the type of transportation they use. [xii]

In Arizona motor vehicle road user taxes and fees don’t cover the full cost of state and local streets and roads. In 2022, these taxes and fees only supplied 67% of these costs in Arizona. [xiii] The rest of the funding is diverted from general government spending, which is made up primarily from income and sales tax dollars. [xiv] 

People living in the Maricopa and Pima County regions pay a regional sales tax that supports transportation infrastructure. Similar county sales taxes for transportation exist in Pinal County and Coconino County. [xv, xvi] These are sales taxes charged on most purchases and are not correlated to the payers’ transportation mode or level of roadway use. [xvii]  

At the local level many communities use a share of their local sales tax to support transportation infrastructure. We can use the City Mesa as an example for how local transportation infrastructure is paid for using local sales tax. While the City of Mesa does get money from the Arizona State Highway Users Revenue Fund (HURF) and grant money through the Maricopa Association of Government and direct federal grants, the city also separates its 2% city sales tax into three separate funds. Of that 0.3% is allocated to the city’s “Local Street Sales Tax” fund to support city streets and roads. [xviii] Many Arizona communities do something similar. 

At the federal level, the gap between the amount of money that goes into the Highway Trust Fund (HTF, which is funded by the federal tax on gasoline and truck tires) and the amount spent on highway projects continues to widen. [xix] In 2024, about $13.5 billion more was spent than received through the federal HTF. [xx] In 10 years, spending is projected to be $37 billion more than comes into the HTF. [xxi] Again, the balance comes from general tax dollars. [xxii] 

At the local, regional, state and federal levels a large portion of transportation infrastructure costs are paid from general taxes, which means roadway funding is paid by all taxpayers, including people who ride bicycles. [xxiii] Shifting to less car dependent streets can reduce the taxes needed to pay transportation infrastructure costs. [xxiv] 

 

“By diverting general funds to roadway spending, the burden of paying for the roads falls on all taxpayers, including people who drive very little or may not drive at all.”  

The Tax Foundation [xxv]  

 

 

Statement: Bicycle infrastructure provides no economic benefit.  

Response: Bicycle infrastructure does provide economic benefit at the local, state, and national levels. Studies from cities throughout the United States, and throughout the world, have shown the positive economic impact of having people riding bicycles in their communities. [xxvi]  

People who ride bicycles shop and dine more often at local businesses than people who drive motor vehicles, and they spend more money in their local communities. [xxvii] Urban bicycle lanes support economic growth by increasing the value of real estate, attracting people who prefer to live close to work or the businesses they frequent, and make workers healthier and more productive. [xxviii] People who ride bicycles support Arizona jobs in many industries, including retail, lodging, food service, recreation, transportation, manufacturing, and more. [xxix] 

Arizona is also known internationally as a bicycle tourist destination, attracting people for on-road and off-road bicycle riding. [xxx] The Arizona Department of Transportation (ADOT) has recognized that Arizona is a major destination for bicycle tourism and that money spent on bicycle tourism “added up to a major economic advantage for our state and helped define Arizona as a destination state for bicycling. Out-of-state visitors clearly import dollars into Arizona.” [xxxi] That 2013 ADOT study found that out-of-state bicycle riders were bringing $88 million to Arizona each year. [xxxii] 

In the U.S., bicycling manufacturing is a $6 billion industry. Several bicycle manufacturing companies and bicycle part and supply companies have a presence in Arizona. In addition, Arizona has hundreds of bicycle shops, most of which are small businesses. 

 

Ways Bicycle Lanes Improve Economic Growth: 

Fueling Redevelopment to Boost Real Estate Value 

Helping Companies Recruit Talented Workers 

Making Workers Healthier and More Productive 

Increasing Retail Visibility and Sales Volume 

People for Bikes [xxxiii] 

 

 

Statement: Money spent on parks and trails provides no economic benefit.   

Response: Outdoor recreation plays a significant role in supporting the Arizona and U.S. economy. The U.S Department of Commerce found that outdoor recreation brought $14 billion to Arizona in 2023 and made up 2.7% of Arizona’s GDP. [xxxiv] Prior to the pandemic, the Arizona Parks and Trails department found that non-motorized trail use by instate residents brought between $6.2 billion and $10.6 billion to the Arizona economy every year. [xxxv] This number does not include the $88 million added by out-of-state visitors each year. [xxxvi]  

A study by University of Arizona found that 59.2% of Arizonans use trails for non-motorized use. [xxxvii] Most trail use is local, so money spent on trails in your community is used primarily by people who live in your community. [xxxviii] 

  • Maricopa County estimates that every $1.00 spent by the county on the eight county parks generates $4.85 in income to the people of Maricopa County. [xxxix] 
  • Pima County estimates that every $1.00 spent on The Loop returns $9.40 to the people of Pima County. [xl] 
  • The Whiskey Off Road bicycle race brings over $3 million to the people in the Prescott area each year. [xli] 
  • El Tour de Tucson brings about $20 million to the people in the Tucson area for the ride weekend and has raised $110 million for local charities. [xlii, xliii]  

 

“The [Tucson] Loop adds $300 million in tax base, thereby generating more than $3 million per year in extra property tax revenue.”

Ecocities Emerging [xliv] 

 The economic benefit of recreational riding events can be quantified in three different effects: 

  1. Direct Effects: Money that goes to the businesses that sell products or services to people engaged in bicycle recreation. Example: Money spent by people participating in a bicycle event. 
  1. Indirect Effects: Money that goes from business to business as a result of the bicycle event. Example: Restaurants and stores in the area around the event purchase more supplies to sell to the people participating in the event. 
  1. Induced Effects: Increased community income because of direct and indirect effects. Example: Restaurants and stores increase staffing during the event and those workers earn and spend money in the community. [xlv] 

In the United States, people spend more on outdoor recreation each year than they do on motor vehicles and fuel combined. [xlvi] Nationwide, outdoor recreation generates $1.2 trillion dollars in economic impact and supports 5 million jobs. [xlvii]   

In addition to increased financial wellbeing, research shows that increased outdoor activity reduces crime, improves education results for students, and reduces long term health costs. [xlviii] 

It is estimated that outdoor recreation pays $6.7 billion dollars in people’s wages in Arizona every year 

Get Outdoors Arizona [xlix] 

 

 

Statement: Adding bike lanes is hard on local businesses.  

Response: People who ride bicycles have a positive economic impact on their local businesses and communities. There are many studies that show people who ride bicycles in urban areas shop more often and spend more money with local businesses than people who drive cars. [l] This means that in addition to supporting local businesses, bike riders are likely paying more money in local taxes than vehicle drivers. [li]  

When looking at money that is spent at local versus national chains, the “multiplier effect” should be considered. Local businesses pay more local taxes, and local employees are more likely to spend locally. [lii] As a result, spending at local businesses keeps more money in your community.  

For every $100 spent at a locally owned business $43 stays in the community. 

For every $100 spent at an out-of-town owned company $13 stays in the community. 

In Business Greater Phoenix [liii] 

 In addition, money spent on bicycle lanes create more local jobs than money spent on motor traffic lanes. 

$1 million spent on bicycle lanes creates 18 to 34 state and local jobs. 

$1 million spent on roads and streets for motor vehicles creates 8 state and local jobs.  

Political Economy Research Institute + Institute for Transportation & Policy Development [liv, lv] 

 In a review of 14 different active transportation infrastructure improvement projects across the United States, People for Bikes did not find anywhere that the economic impact was negative. In every case the sales and employment rates either improved or remained the same. [lvi] 

 Adding safer bicycle infrastructure is shown to  

increase the number of people riding bicycles,

and those people are more likely to shop locally,

as a result,  

better bike lanes bring more money to local businesses! [lvii, lviii]

 

 

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Hendrickson Inc, ____, https://www.sehinc.com/insights/why-your-community-should-invest-bicycle-and-
pedestrian-infrastructure
ii Dosdall & Kienitz, 8 Reasons Your Community Should Invest in Bicycle and Pedestrian Infrastructure, Short
Elliott Hendrickson Inc, ____, https://www.sehinc.com/insights/why-your-community-should-invest-bicycle-
and-pedestrian-infrastructure
iii _____, Cycle Track Barrier Selection Matrix, People for Bikes, _____, https://wsd-pfb-
sparkinfluence.s3.amazonaws.com/uploads/2018/09/Cycle-Track-Barrier-Selection-Matrix.xlsx
iv Ratledge, Bike Lanes Make Roads Safer for All Road Users, The Coalition of Arizona Bicyclists, 2023,
https://www.cazbike.org/bike-lanes-make-roads-safer-for-all-road-users/
v Miller, et al., The Economic and Societal Impact of Motor Vehicle Crashes, 2019 (Revised), National
Highway Traffic Administration, 2023,
https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/813403.pdf
vi _____, NHTSA: Traffic Crashes Cost America $340 Billion in 2019, National Highway Traffic Safety
Administration, 2023, https://www.nhtsa.gov/press-releases/traffic-crashes-cost-america-billions-2019
vii Blincoe et al, The Economic and Societal Impact of Motor Vehicle Crashes, 2019 (Revised), U.S.
Department of Transportation National Traffic Highway Administration, 2023,
https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/813403.pdf
viii _____, Cycling lanes reduce fatalities for all road users, study shows, Science Daily, 2019,
https://www.sciencedaily.com/releases/2019/05/190529113036.htm
ix Pedroso, Investing in Walking, Biking, and Safe Routes to School: A Win for the Bottom Line, Safe Routes to
School National Partnership, 2017,
https://saferoutespartnership.org/sites/default/files/resource_files/121117-sr2s-investing_report-final.pdf
x Wilson, Why Preventing Car Crashes Saves Everyone Money, StreetsBlog USA, 2020,
https://usa.streetsblog.org/2020/04/22/why-preventing-car-crashes-saves-everyone-money
xi Ratledge, People Who Ride Bicycles on the Roadway Already Pay Their Share, Coalition of Arizona
Bicyclists, 2021, https://www.cazbike.org/bicyclists-already-pay-their-share/
xii Macumber-Rosin & Hoffer, Road Taxes and Funding by State, 2025, The Tax Foundation, 2025,
https://taxfoundation.org/data/all/state/state-road-taxes-funding/
xiii Macumber-Rosin & Hoffer, Road Taxes and Funding by State, 2025, The Tax Foundation, 2025,
https://taxfoundation.org/data/all/state/state-road-taxes-funding/
xiv Muresianu & Hoffer, EVs and the Highway Trust Fund: Five Things to Know, The Tax Foundation, 2025,
https://taxfoundation.org/blog/ev-highway-trust-fund/
xv ____, Pinal County Transportation Excise Tax, State of Arizona Office of the Auditor General, 2023,
https://www.azauditor.gov/sites/default/files/2023-11/06-03_highlights.pdf
xvi _____, About Public Works, Coconino County, 2025, https://www.coconino.az.gov/291/Public-Works
xvii _____, 2022-2026 Current Five-Year Transportation Facilities Construction Program, Arizona Department of
Transportation, 2021,
https://apps.azdot.gov/ADOTLibrary/Multimodal_Planning_Division/FiveYrPlan/Five_Year_Program-FY2022-
26.pdf
xviii Brian Ritschel, City of Mesa Management and Budget Director, Email to Earl Ratledge, April 24, 2025
xix Muresianu & Hoffer, EVs and the Highway Trust Fund: Five Things to Know, The Tax Foundation, 2025,
https://taxfoundation.org/blog/ev-highway-trust-fund/
xx Muresianu & Hoffer, EVs and the Highway Trust Fund: Five Things to Know, The Tax Foundation, 2025,
https://taxfoundation.org/blog/ev-highway-trust-fund/
xxi Muresianu & Hoffer, EVs and the Highway Trust Fund: Five Things to Know, The Tax Foundation, 2025,
https://taxfoundation.org/blog/ev-highway-trust-fund/
xxii Macumber-Rosin & Hoffer, Road Taxes and Funding by State, 2025, The Tax Foundation, 2025,
https://taxfoundation.org/data/all/state/state-road-taxes-funding/
xxiii Macumber-Rosin & Hoffer, Road Taxes and Funding by State, The Tax Foundation, 2025,
https://taxfoundation.org/data/all/state/state-road-taxes-funding/
xxiv _____, The High Cost of Transportation in the United States, The Institute for Transportation & Development
Policy, 2024, https://itdp.org/2024/01/24/high-cost-transportation-united-states/
xxv Macumber-Rosin & Hoffer, Road Taxes and Funding by State, 2025, The Tax Foundation, 2025,
https://taxfoundation.org/data/all/state/state-road-taxes-funding/
xxvi Ratledge, People Who Ride Bicycles Have a Positive Impact on Local Economy, Coalition of Arizona
Bicyclists, 2022, https://www.cazbike.org/people-who-ride-bicycles-have-a-positive-impact-on-local-
economy/
xxvii Ratledge, People Who Ride Bicycles Have a Positive Impact on Local Economy, The Coalition of Arizona
Bicyclists, 2022, https://www.cazbike.org/people-who-ride-bicycles-have-a-positive-impact-on-local-
economy/
xxviii _____, Protected Bike Lanes Mean Business, People for Bikes, ____, https://bikeleague.org/wp-
content/uploads/2023/03/protectedbikelanesmeanbusiness.pdf
xxix _____, The Outdoor Recreation Economy, Outdoor Recreation Industry, 2017,
https://outdoorindustry.org/wp-content/uploads/2017/04/OIA_RecEconomy_FINAL_Single.pdf
xxx _____, Cycling in Arizona, Arizona Department of Tourism, ____, https://www.visitarizona.com/like-a-
local/two-wheeled-touring-cycling-in-arizona/
xxxi _____, ADOT completes study on economic impact of bicycling in Arizona, Arizona Department of
Transportation, 2012, https://azdot.gov/news/adot-completes-study-economic-impact-bicycling-
arizona#:~:text=A%20new%20study%20by%20the%20Arizona%20Department,generated%20each%20year
%20from%20out%2Dof%2Dstate%20bicycle%20enthusiasts
xxxii _____, ADOT completes study on economic impact of bicycling in Arizona, Arizona Department of
Transportation, 2012, https://azdot.gov/news/adot-completes-study-economic-impact-bicycling-
arizona#:~:text=A%20new%20study%20by%20the%20Arizona%20Department,generated%20each%20year
%20from%20out%2Dof%2Dstate%20bicycle%20enthusiasts
xxxiii Anderson & Hall, Protected Bike Lanes Mean Business, People for Bikes, 2023,
https://bikeleague.org/wp-content/uploads/2023/03/protectedbikelanesmeanbusiness.pdf
xxxiv _____, Outdoor Recreation Satellite Account, U.S. and States, 2023, U.S. Bureau of Economic Analysis,
2024, https://www.bea.gov/sites/default/files/2024-11/orsa1124_0.pdf
xxxv Duval et al, The Economic Value of Trails in Arizona, University of Arizona College of Agriculture and Life
Sciences, 2020, https://arizona-
content.usedirect.com/storage/pages/20220628055837AZ%20Trails%20Economic%20Value_Full%20Repor
t_3-30-2020_FINAL.pdf
xxxvi _____, ADOT completes study on economic impact of bicycling in Arizona, Arizona Department of
Transportation, 2012, https://azdot.gov/news/adot-completes-study-economic-impact-bicycling-
arizona#:~:text=A%20new%20study%20by%20the%20Arizona%20Department,generated%20each%20year
%20from%20out%2Dof%2Dstate%20bicycle%20enthusiasts
xxxvii Duval et al, The Economic Value of Trails in Arizona, University of Arizona College of Agriculture and Life
Sciences, 2020, https://arizona-
content.usedirect.com/storage/pages/20220628055837AZ%20Trails%20Economic%20Value_Full%20Repor
t_3-30-2020_FINAL.pdf
xxxviii Duval et al, The Economic Value of Trails in Arizona, University of Arizona College of Agriculture and Life
Sciences, 2020, https://arizona-
content.usedirect.com/storage/pages/20220628055837AZ%20Trails%20Economic%20Value_Full%20Repor
t_3-30-2020_FINAL.pdf
xxxix _____, Research finds taxpayers get more than 4 times return on investment in Maricopa County parks and
recreation, Arizona State University, 2021, https://publicservice.asu.edu/research-finds-taxpayers-get-
more-4-times-return-investment-maricopa-county-parks-and-
recreation#:~:text=Maricopa%20County%20residents%20realized%20a%20$4.85%20return,according%20t
o%20an%20ASU%20economic%20impact%20study
xl Pruetz, Arizona: The Greater Tucson Loop Connects All the Dots, Ecocities Emerging, 2019,
https://ecocitiesemerging.org/arizona-the-greater-tucson-loop-connects-all-the-dots/
xli _____, Whiskey Off-Road in Jeopardy, Email from Mountain Bike Association of Arizona to Earl Ratledge, 2025
xlii _____, Impact of cycling tourism in Tucson, KOLD 13 News, 2018,
https://www.kold.com/story/25647979/impact-of-cycling-tourism-in-tucson/
xliii Nannini, El Tour de Tucson: 40 Years of Impact, Biz Tucson, 2023, https://biztucson.com/el-tour-at-40/
xliv Pruetz, Arizona: The Greater Tucson Loop Connects All the Dots, Ecocities Emerging, 2019,
https://ecocitiesemerging.org/arizona-the-greater-tucson-loop-connects-all-the-dots/
xlv Piatkowski et al, Investing in Bicycle Infrastructure to Spur Statewide Economic Growth Through Bicycle
Tourism, University of Nebraska-Lincoln, 2020, https://dot.nebraska.gov/media/r2oftfuu/bicycle-
infrastructure-final_report.pdf
xlvi ____, The Outdoor Recreation Economy, Outdoor Recreation Industry, 2017,
https://outdoorindustry.org/wp-content/uploads/2017/04/OIA_RecEconomy_FINAL_Single.pdf
xlvii _____, New Data Shows Outdoor Recreation is a $1.2 Trillion Economic Engine, Outdoor Recreation
Roundtable, 2025, https://recreationroundtable.org/news/new-data-shows-outdoor-recreation-is-a-1-2-
trillion-economic-engine-supporting-5-million-american-jobs/
xlviii ____, The Outdoor Recreation Economy, Outdoor Recreation Industry, 2017,
https://outdoorindustry.org/wp-content/uploads/2017/04/OIA_RecEconomy_FINAL_Single.pdf
xlix _____, Outdoor Recreation Satellite Report, Get Outdoors Arizona, 2023,
https://apps.bea.gov/data/special-topics/orsa/summary-sheets/ORSA%20-%20Arizona.pdf

l Ratledge, People Who Ride Bicycles Have a Positive Impact on Local Economy, The Coalition of Arizona
Bicyclists, 2022, https://www.cazbike.org/people-who-ride-bicycles-have-a-positive-impact-on-local-
economy/
li Ratledge, People Who Ride Bicycles Have a Positive Impact on Local Economy, The Coalition of Arizona
Bicyclists, 2022, https://www.cazbike.org/people-who-ride-bicycles-have-a-positive-impact-on-local-
economy/
lii Nolan, Cycling Dollars from Local to Local, in Business Greater Phoenix, 2013,
https://inbusinessphx.com/in-business/cycling-dollars-from-local-to-local
liii Nolan, Cycling Dollars from Local to Local, in Business Greater Phoenix, 2013,
https://inbusinessphx.com/in-business/cycling-dollars-from-local-to-local
liv Garrett-Peltier, Pedestrian and Bicycle Infrastructure: A National Study of Employment Impacts, Political
Economy Research Institute, 2011, https://bikeleague.org/sites/default/files/PERI_Natl_Study_June2011.pdf
lv Yanocha et al, Making the Economic Case for Cycling, Institute for Transportaton & Policy Development,
____, https://itdp.org/wp-content/uploads/2022/06/Making-the-Economic-Case-for-Cycling_6-13-22.pdf
lvi _____, Economic Impacts of Bicycle and Pedestrian Street Improvements, People for Bikes, ____,
https://prismic-io.s3.amazonaws.com/peopleforbikes/ec41f97a-844a-4bc7-ac38-
a21be0a777ee_Economic-Impacts-of-Street-Improvements-summary-report.pdf
lvii Enger, High-Quality Bike Facilities Increase Ridership and Make Biking Safer, National Association of City
Transportation Officials, 2016, https://nacto.org/latest/high-quality-bike-facilities-increase-ridership-make-
biking-safer/
lviii Ratledge, People Who Ride Bicycles Have a Positive Impact on Local Economy, The Coalition of Arizona
Bicyclists, 2022, https://www.cazbike.org/people-who-ride-bicycles-have-a-positive-impact-on-local-
economy/

 

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