An Update of E-Bike Purchase Incentive Programs in North America

John MacArthur, Portland State University

Summary:

The electric bicycle (e-bike) is a low-emission mode of transportation that offers communities benefits in the areas of health, planning, time, cost, street safety, congestion, air pollution, noise pollution, and energy security (BenoƮt et al., 2011). E-bikes enable more people to ride a bicycle for longer distances despite physical limitations, difficult terrain, and the presence of cargo (MacArthur et al., 2018). In the most recent U.S. National Household Travel Survey (NHTS), completed in 2022, 35% of trips made in single-occupancy vehicles (SOVs) were two miles or shorter, while 60% of trips were five miles or shorter (Federal Highway Administration, 2022). On average, light-duty vehicles account for approximately 17% of all greenhouse gas emissions in the United States. Encouraging the adoption of e-bikes can be an effective strategy to reduce single-occupancy vehicles (SOV) and vehicle miles traveled (VMT) (McQueen et al., 2020). Electric bicycles offer several advantages to riders, namely greater mobility (making hills and headwinds less challenging), more speed for less effort, and the ability to travel farther distances than with a conventional bicycle. 

These trip distances are within 8- and 20-minute travel ranges for an e-bike, assuming an average speed of 15 miles per hour (mph). Initial studies on mode substitution by e-bikes indicate that they have a strong potential to replace vehicle trips (Bigazzi & Wong, 2020; Bigazzi et al., 2025). Additionally, e-bikes provide a more accessible and cost-effective option than other alternative modes. Due to pedal assistance, e-bikes are more accessible for a wider range of demographics and use cases than conventional "acoustic" bicycles because range, cargo capacity, and accessible terrain are all increased. The purchase price for e-bikes is typically less than 10% of that of an electric vehicle, and operation and infrastructure costs are minimal compared to SOVs or transit. Therefore, e-bikes provide a promising pathway for policymakers to address their transportation-sector emissions, mode share, and vehicle-miles-traveled (VMT) reduction goals. 

In order to accomplish VMT reduction goals, a high rate of e-bike adoption is likely necessary due to their increased ability to travel longer distances under various use cases. In the context of mode share and VMT reduction goals, policymakers across the country would likely consider the market for e-bikes to have considerable room for growth. To meet environmental and operational objectives and increase the number of people cycling, how can e-bikes be shifted out of the early adopter phase? A core group of early users has been established in North America; bridging the chasm of e-bikes' technological adoption curve is the next major challenge in the market. However, for many consumers, price provides the most significant barrier to entering the market for a relatively unfamiliar product. 

To minimize the initial cost of e-bikes and to encourage adoption, financial incentives or rebates have emerged as a popular technique; more than 115 active, lapsed, or proposed e-bike incentive programs have been identified in North America. This white paper summarizes the results of the most recent scan of e-bike incentive purchase programs and reviews changes since the last scan in 2022. The goal of this white paper is to provide policymakers, agency leads, and local community leaders with the state of e-bike incentive programs to help them understand current policies and practices.

Project Details

Project Type:
Research
Project Status:
Completed
End Date:
January 01,2026
UTC Grant Cycle:
PacTrans Year 2