Cyclists have been giving it away for too long. By forgoing the automobile for some of our travel and keeping ourselves healthy, we confer benefits on the rest of society. Of course, many of us would cycle for the sheer joy of it regardless of whether it produced any positive externalities (as I believe an economist would describe our gratuitous benefits to society). But if cycling were better paid — either directly or through better enforcement of our rights or the provision of bike lanes, workplace showers and other amenities — then
there would be more of it.

Quantifying our externalities might also earn us more respect from other users of the road. Would someone who commutes by car be so quick to yell, “Get off the road!,” if he were aware that bicycle commuters reduce congestion, free up parking spaces, lessen demand for gasoline and lower his health-insurance premiums?

Until recently, there were few mechanisms in place to encourage people to internalize the societal benefits of cycling (and the negative externalities that flow from driving) when making decisions about how to travel or spend their leisure time. That’s beginning to change, I think. Probably the most prominent example is the congestion-pricing scheme instituted so successfully in London, which imposes a toll on drivers entering the city during times of peak congestion. New York City is looking at a similar scheme.

The rising costs of health care are also pushing efforts to make externalities more tangible. My Excellus health plan, and I’m sure many others, already helps pay for health-enhancing activities like gym memberships.

A brochure I received today from Excellus leads me to think that organizations that promote bicycling may be able to benefit from the concern about health-care costs.

The brochure announced that come 2008, Excellus would issue to me, at no additional cost, a “$650 pre-paid card to use for fitness and weight loss programs, with the freedom to go wherever and whenever you want. There are virtually no claim forms to complete…. It’s like a gift card you can use to improve your health!”

It occurred to me that bicycling organizations that sponsor rides might be able to use this mechanism to defray some of their expenses. According to a very helpful person in Excellus’ customer service department (whose name I neglected to write down, I’m afraid), the card will bear the Master Card symbol and can be processed by any organization that can process Master Card credit cards. The organization would have to be approved and she suggested bicycle organizations contact customer service if interested. I didn’t get a sense of how onerous the application process might be.

Is this a pipe-dream? I’m not sure. Would Excellus approve bike club membership fees? What about per-ride fees? One of the great things about so many rides is that they are free. If clubs made payment voluntary, would that be acceptable to a health plan? What about advocacy organizations that also sponsor rides? Would they be able to get funding for health-enhancing activities that indirectly benefit their advocacy efforts? (Doesn’t the YMCA carry on charitable activities?) Would the paperwork be too much?

I’d welcome comments on this idea.