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American Focus > Blog > Economy > Bicycles Before Business – Econlib
Economy

Bicycles Before Business – Econlib

Last updated: September 19, 2025 8:00 pm
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Bicycles Before Business – Econlib
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El Camino Real (ECR), also known as State Highway 82, serves as the vital artery linking San Jose to San Francisco, nestled snugly between the Federal Highways 280 and 101. While maintenance and rehabilitation efforts are predominantly funded by the state, local authorities chip in modestly. In a peculiar twist, Caltrans possesses the authority to repave and redesign ECR without needing the city’s nod of approval.

In 2024, Caltrans took on the task of repaving ECR, stretching from Menlo Park southward through Palo Alto—where it runs parallel to Stanford University—Los Altos, Mountain View, and into Sunnyvale. This endeavor included advancements in curb ramps and sidewalks to meet the standards set by the Americans with Disabilities Act, alongside the introduction of dedicated bicycle lanes. Remarkably, the bulk of this project was wrapped up by July 1, 2025.

The budget for this initiative was set at $7,133,000; however, the specific cost allocated for the charmingly soft white posts and green markers that delineate the bike lanes remains conspicuously absent from the ledger. A rough estimate places that figure at no more than $2 million.

Local businesses, especially restaurants, have voiced their grievances over the loss of street parking, which has impacted customer footfall before, during, and after the installation of these lane markers. Patrons are often spotted scouring residential areas for parking spots, leading to what can only be described as a modern-day game of hide and seek. While quantifying the exact financial fallout is tricky, I’ve personally witnessed potential diners turn on their heels and drive away in frustration.

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Now, what of the intended beneficiaries—the cyclists? Since the lanes’ completion, have they witnessed an uptick in usage? Every Sunday, my wife and I indulge in a lunch outing at a restaurant along ECR or a side street nearby. I also make weekly trips to Safeway Pharmacy and Grocery Store in Menlo Park via ECR, while my wife visits two major retailers along the same route and makes biweekly trips to Ranch 99 in Mountain View. That’s a grand total of four trips a week and nine biweekly excursions. On August 17, 2025, marking our 62nd anniversary, we dined at our favorite Chinese restaurant on ECR. Arriving early, we were seated next to a large window overlooking the street. At that moment, we both exclaimed, “Look, a bicyclist!”—the first we had spotted using the new bike lane. By then, we had traversed approximately a hundred miles since the lanes opened on July 1.

Thousands of students, faculty, and staff have been cycling to Stanford for years without the luxury of dedicated bike lanes along ECR. At Stanford, the internal bike lanes are simply marked with paint and words—an ingenious solution, if one might say so.

But, are the new bike lanes worth the direct costs of installation and the indirect costs of lost business? Personally, I remain skeptical. Until these lanes see a significant uptick in usage, alleviating automobile congestion and reducing carbon emissions, their value remains questionable. Even if such an outcome were to materialize, local businesses would still likely feel the pinch. But then again, this is California, where the absurd often feels like the norm!

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Alvin Rabushka is the David and Joan Traitel Senior Fellow, Emeritus at the Hoover Institution.

TAGGED:BicyclesBusinessEconlib
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