A bicycle as an investment

It is unlikely I would have thought of a newly bought bicycle as an 'investment' (rather than as an expense) had I not read about Carbon Emissions trading (more popularly called CER trading) or about the current climate change concerns.

Here is a quick analysis of my new investment called "Project Bicycle":


mileage of my two-wheeler: 35 km/ltr
Driving need for a day: 6 km/day
petrol conumsed per day: 0.171 ltr/day
Emissions per ltr of petrol: 2.320 kg/lt
emissions saved per day: 0.398 kg/day
No. of days in year: 270 days
Carbon emissions saved in a year: 107.383 kg/year
Carbon emissions saved in a year: 0.107 ton/year
revenues from CER at 20 Euros/CER: 118.121 Rs/year

Savings on fuel: 46.286 ltr/year
Current price of petrol: 45 Rs/ltr
costs saved on fuel: 2,082.857 Rs/year

Payback purely on fuel savings
Total inflow 2,082.9 Rs/year
Total outflow 2400.0 Rs
Payback 1.15 years

*Payback considering CERs
Total inflow 2,200.98 Rs/year
Total outflow 2400.0 Rs
Payback 1.09 years

*although, CER trading at a personal level is not available at the moment; but imagine if 10,000 new cycles register for such a benefit :) so that the transaction costs of such a sale can be justified

Of course, I have been on the realistic side when :

• I compare my bycycle with a two-wheeler and not a car (which I use more often)
• Petrol prices assumed at Rs. 45/ltr when it is very much in news that government is going to up the fuel prices as it is no longer capable to bear the load of oil subsidies.
• I ignore the health benefits that get accrued to me.

Wish mucinipalities could bail out the existing cyclists and new cycling enthusiasts with dedicated lanes or fining auto drivers from honking incessantly at cyclists.