Discuss whether or not a government should encourage more people to cycle.

The Economics of Cycling

I. Introduction
A. Background Information on the Topic
Cycling is a popular form of transportation in many countries around the world. It is an efficient, cost-effective, and environmentally friendly way to get around. Cycling has many benefits, including reducing external costs, improving the environment, improving people's health, reducing traffic congestion, and reducing the need to import petrol.

B. Thesis Statement
This essay will discuss the economics of cycling, exploring both the reasons why the government should encourage more people to cycle and the reasons why the government should not encourage more people to cycle.

II. Reasons Why the Government Should Encourage More People to Cycle
➡️A. Reduction of External Costs
Cycling reduces external costs, such as air pollution, noise pollution, and traffic congestion. By reducing these external costs, the government can save money on healthcare costs and other costs associated with air pollution and traffic congestion.

➡️B. Improvement of the Environment
External benefits are benefits enjoyed by the third party who are neither involved in production or consumption of goods and services. Increased cycling would mean that pollution levels will decrease, which not only promotes sustainability, but also reduces external costs such as traffic and noise. Cycling is an environmentally friendly form of transportation. It does not produce any emissions, and it does not require the use of fossil fuels. This means that cycling can help reduce the amount of greenhouse gases in the atmosphere, which can help reduce the effects of climate change.

➡️C. Improvement of People's Health
Cycling is a great form of exercise, and it can help people stay fit and healthy. Cycling can also help reduce the risk of certain diseases, such as heart disease and diabetes. The private benefit of cycling, enjoyed by cyclists, is their fitness will increase. But government can enjoy a more healthy labour force which means it can result in better quality of goods and services, which can be exported to increase export revenue. Moreover, cycling increases fitness, which could also mean that the government will not have to spend more on healthcare. This finance can be used somewhere else, like infrastructure.

➡️D. Reduction of Traffic Congestion
Cycling can help reduce traffic congestion, as it takes up less space on the roads than cars. This can help reduce the amount of time people spend stuck in traffic, and it can also help reduce the amount of fuel that is wasted in traffic jams.

➡️E. Reduction of the Need to Import Petrol
Cycling does not require the use of petrol, so it can help reduce the need to import petrol from other countries. This can help reduce the cost of petrol, and it can also help reduce the amount of money that the government has to spend on importing petrol.

III. Reasons Why the Government Should Not Encourage More People to Cycle

➡️A. Costs Involved in Building Cycle Paths
Building cycle paths can be expensive, and the government may not be able to afford to build them. This could mean that the government would have to spend money on other projects, such as building roads or improving public transport. If cycling is promoted, the government will have to build cycling parks and parking, increasing the costs and opportunity cost as same money could be used for retraining and reskilling. In addition, if the land is used for cycling parks, the opportunity cost will be high as land is scarce, and it could be used for housing.

➡️B. Unemployment in the Car Industry
Encouraging more people to cycle could lead to a decrease in demand for cars, which could lead to unemployment in the car industry. This could have a negative impact on the economy, as it could lead to a decrease in tax revenue and an increase in unemployment benefits.

IV. Conclusion
In conclusion, the economics of cycling show that there are many benefits to promoting cycling as a form of transportation. The reduction of external costs, improvement of the environment, improvement of people's health, reduction of traffic congestion, and reduction of the need to import petrol are all reasons why the government should encourage more people to cycle. However, it is also important to consider the potential drawbacks, such as the costs involved in building cycle paths and the potential impact on the car industry.