How the US Can Leverage the Electric Bike Boom for Transportation Decarbonization in the Build Back Better Act
E-bikes have the potential to transform how we travel and cut transportation emissions in the U.S. To get there, we need policies that make e-bikes more affordable and accessible.
As global leaders gather at the 2021 United Nations Climate Change Conference (COP26), nations are refining their strategies to reduce greenhouse gas (GHG) emissions to align with the target of limiting global warming to 1.5°C. Lowering transportation emissions, a major contributor to climate change, is a key part of the conference; however, the focus has been on the role of electric cars to do so, with active transportation being mostly left off the agenda. While car electrification is critical to reaching our goals, it will not decarbonize the transportation sector fast enough by itself. Additionally, assuming that everyone will, can, and should drive will not contribute to reducing growing disparities in wealth and income across the globe. To limit the worst effects of the climate crisis, we must reduce how much we are driving and shift trips toward more efficient, affordable and sustainable modes like public transportation and active travel.
At the same time as COP, the United States Congress is working to include major climate provisions in the Build Back Better reconciliation package, with the goal of having a framework for meeting the U.S. target of reducing carbon emissions by 50–52%, compared to 2005 levels, by 2030. In the U.S., transportation is the largest contributor to GHG emissions by sector. Urgent action is needed to decarbonize America’s transportation system, but similar to Glasgow, much of the recent conversation in Washington has been focused on electric cars as the main route to cut transportation emissions. Overhauling our travel habits, especially in a country built around personal car ownership, is a daunting task, but it is a necessary part of the solution to the climate crisis and for a just transition to a sustainable economy. So how can we shift trips from cars to active travel?
One of the most promising new transportation technologies that has been surging in popularity is electric bicycles (e-bikes). E-bike sales in the U.S. increased 240% from July 2020 to July 2021, and Deloitte expects 130 million e-bikes to be sold globally between 2020 and 2023. Besides reducing GHG emissions, e-bikes are more affordable than cars and have the potential to replace many short car trips — 52% of trips in the U.S. are less than three miles. A recent North American survey found that 50% of e-bike commute trips replaced automobile commute trips, and a review of European studies showed that e-bike trips replaced car trips 47 to 76 percent of the time. In terms of cost per kilogram of CO2 saved, e-bike incentives are the most cost-effective subsidy for reducing GHG emissions compared to battery-electric vehicle and plug-in hybrid electric vehicle incentives. E-bikes also offer a fun, sweat-free way for you to reach your destination and can be easier for people with limited physical ability to use.
As a viable alternative to car trips, e-bikes can help the U.S. reduce transportation emissions and reliance on automobiles, tackling both sides of the sustainable transportation challenge. To fully realize the positive impacts of e-bikes, the U.S. needs supportive federal legislation that makes e-bikes more affordable and accessible to all Americans, as well as safe biking infrastructure.
Building Back Better — with E-Bike Legislation
Recent federal legislative efforts to help drive e-bike uptake in the U.S. include the E-BIKE Act introduced in the House of Representatives earlier this year and the incorporation of that bill in the Build Back Better reconciliation package. The e-bike tax credit provision has been subject to several revisions, with the latest bill text, released on November 3, featuring a 30% refundable tax credit for the first $3,000 of an e-bike that can cost up to $4,000. As negotiations continue, the e-bike tax credit is at risk of being cut from the final package. Congress must ensure the e-bike incentive is included in final passage of the reconciliation bill to help the U.S. reach its emissions reduction goals. Congress should also consider raising the maximum e-bike price back up to at least $5,000 to include more electric cargo bikes, which range in cost from $2,5000 to more than $6,000 and can be used by parents transporting children, for local deliveries, to pick up groceries and otherwise make it more convenient to replace car trips for short journeys that need cargo capacity.
While the inclusion of the e-bike tax incentive in the reconciliation bill is a positive step toward expanding access to e-bikes for all Americans, the bill ultimately provides significantly more money for electric car incentives, which are more expensive than e-bike incentives in terms of cost per kilogram of CO2 saved. Additionally, the reconciliation bill includes much higher income caps for electric cars than e-bikes. Currently, individuals who make up to $250,000 qualify for the new electric car incentive, while only individuals making up to $75,000 qualify for the e-bike incentive. This disparity continues to lock the U.S. into car dependency by prioritizing investments in automobiles over sustainable active transportation. In the U.S. car ownership is often the price of entry into the economy, as autocentric development patterns have resulted in increasing distances between where we live and where we work (or where we wish to find work). Cars create a high economic burden for many households, with the lowest-income 20% of the U.S. population spending an average of 32% of their income on transportation expenses, and the price of automobile ownership continues to grow.
Further Leveraging the E-Bike Boom Take Off in the U.S.
While the U.S. is ripe for continued growth in e-bike usage, the incentives included in the reconciliation bill can only generate real uptake and mode shift to e-bikes with the support of dedicated infrastructure. High-quality cycling networks and protected bike lanes, in particular, help keep riders safe, as well as help them feel safe.
We must also address fair use of streets, which prioritize automobiles over pedestrians, cyclists and other non-motorized road users. Regulations that assign fair road use prices for cars, trucks and other fast-moving vehicles like motorbikes (which should not be considered e-bikes); regulations that reallocate space to create more equitable, accessible streets for all; and education for car drivers to better share the road and respect bicycle and e-bike users are useful complements to infrastructure.
On the manufacturing side — especially given the current global supply chain disruption and its impacts on the e-bike market — the U.S. would also benefit from strengthening its onshore cycling industry, as currently most e-bikes and their components are produced in Asia.
As the U.S. works to pass legislation to meet its carbon emissions reduction target by 2030, e-bikes are poised to help shift our travel habits, reduce how much we drive and increase affordability while decarbonizing the transportation sector. We must continue to leverage the e-bike boom in the U.S. through policies that make e-bikes more affordable for all Americans in the Build Back Better Act, and by building more safe cycling infrastructure.
This post was authored by Leanne Kaplan, NUMO federal policy lead, and Carlos F. Pardo, NUMO senior advisor, with assistance from Madlyn McAuliffe (NUMO).
NUMO, the New Urban Mobility alliance, is a global organization that channels tech-based disruptions in urban transport to create joyful cities where sustainable and just mobility is the new normal. Founded in 2019 as an outgrowth of the Shared Mobility Principles for Livable Cities, NUMO convenes diverse allies and leverages the momentum of significant revolutions in mobility to target urban issues — including equity, sustainability, accessibility and labor — impacted by the shifting transportation landscape. NUMO is hosted by WRI Ross Center for Sustainable Cities.
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