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E-bike rebates shine in Canada

Photo credit: District of Saanich

An e-bike rebate program in Canada has proven highly effective at changing travel habits, and demonstrated that such schemes can cut carbon emissions in a cost-effective way.

By reducing car travel, the rebate program cut carbon emissions at a modelled cost of CAD$190 and $720 per tonne (AU$210 to $800), putting it on par with climate local rebate programs for electric cars in terms of climate change mitigation.

“This suggests that e-bike incentives are more cost-effective in reducing emissions compared to electric car incentives, and that’s without including a range of cycling-related benefits such as increased physical activity, reduced local air pollutants and decreased travel costs,” says Dr. Alex Bigazzi, principal investigator from the University of British Columbia.

The findings also put e-bike rebate schemes in the same ballpark as direct air carbon capture, an early-stage technology that governments are investing millions to develop in pursuit of net zero emissions.

The difference, of course, is that the e-bikes are here and ready to roll.

The researchers analysed an e-bike rebate program introduced on Vancouver Island over 2021 and 2022.

E-bike rebates were offered to locals at varying tiers depending on their income: CAD$350, $800 or $1600 (AU$385, $880 or $1764).

The researchers surveyed participants at three intervals to understand their travel habits over time and model the impacts of the scheme on carbon emissions.

The analysis shows that the rebates made e-bikes an enticing transport option;  93% of recipients were new to e-bikes, while 60% were new to bike riding.

On average, the new or marginal e-bike purchasers wound up loving their e-bikes so much that they were using them three to four days a week one year later. This resulted in an average reduction of weekly car travel by 49km, or 30-40%, and average CO2 savings of 16kg per week, per user.

The shift in travel habits was most pronounced among low-income participants who received the higher $1600 rebate. Their reduction in kilometres travelled by car each week was double the reduction of those receiving $350 rebates.

“The incentive not only encouraged people to switch to e-bikes, it also resulted in remarkable changes in travel behaviour that persisted long after the purchase,” says Bigazzi.

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