Insights

The economics of walking deserves far more attention

Posted June 13, 2018

Author(s):
Sectors:
SGS Economics and Planning Economic and health benefits of walking

Helping people to walk safely and efficiently around Melbourne’s CBD is vital to a strong economy and healthier society.

People who walk face less stress, better health and lower transport costs; society gets reduced road congestion, more active public spaces and thriving businesses. For many, the decision to walk or not is influenced by the infrastructure around them. Too often, this infrastructure prioritises the speed and safety of the car or public transport journeys over those of pedestrians.

Nearly every week we see the costs and benefits of road infrastructure modelled to inform investment decisions but very little is said about the benefits of making it easier and safer for people to get around on foot.

An SGS Economics and Planning study, which formed part of the City of Melbourne’s transport strategy, showed that increasing the level of walking connectivity by just 10 per cent would increase the value of Melbourne’s Hoddle Grid economy by $2.1 billion a year.

It also uncovered that more people cross Melbourne's Collins Street each day than drive over the Westgate Bridge, one of the city's key traffic arteries. However, vehicles often take precedence over pedestrians in Australia’s CBDs even though it's not clear that is the most economically efficient option.

SGS Economics and Planning Terry Rawnsley

Everyone who arrives in the City of Melbourne by car, tram and train eventually become a pedestrian to reach their destination. If you improve connectivity for pedestrians the city will become more productive. Melbourne’s streets, laneways and arcades create a dense network of pedestrian access that enables face-to-face connections fundamental to the retail and knowledge economy. In some locations, cars create a real barrier to the economy.

— Principal & Partner Terry Rawnsley

Melbourne’s $95 billion economy relies on pedestrian connectivity. The footpaths, pedestrian crossings and laneways of the city connect us all, which enables the heart of Melbourne to drive the Victorian economy.

The booming knowledge economy makes walking the streets even more important. Knowledge-intensive businesses such as finance, insurance and professional services rely on the ability to share ideas and insights through informal encounters often made at street level.

Our study focuses on the economic contribution of improved productivity, however, other major benefits include improved safety and reduced vehicle emissions. The report identified big variations in the routes available to CBD walkers. Some walkways allowed pedestrians to travel an average speed of four kilometres an hour while others allowed speeds of just one kilometre an hour because of obstacles like unfavourable traffic light phasing.

With the daily population in Melbourne’s city set to increase from 911,000 to 1.4 million by 2036, determining the best way for people to travel around the city is at a serious juncture.

The economics of walking deserves far more attention.

Author(s):
Sectors:
SGS Economics Planning Terry Rawnsley
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Terry Rawnsley

National Leader for Economic & Social Analysis | Principal & Partner

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