Olympic Games Encourage People to Exercise – but Only in the Short Term

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ZEW Economist Nicolas Ziebarth on the Paris Olympics

According to an as yet unpublished study, the Olympic Games encourage sport in the short term.

Olympic Games are typically accompanied by discussions about whether they are economically or socially beneficial. The 2024 Summer Olympics in Paris is no exception, as it has both supporters and critics. Nicolas Ziebarth, head of the Research Unit “Labour Markets and Social Insurance” at ZEW Mannheim and professor at the University of Mannheim, has commented on this matter:

“Paris was the most visited city in the world in 2022 and does not need the Olympics, which will cost French taxpayers between three and five billion euros, to boost its international appeal. In economic terms, Olympic Games do not offer any sustainable effects to justify such an investment, as we found in a study on the 2012 Summer Olympics in London.

However, hosting Olympics and other major sporting events is still worthwhile. The subjective well-being of the population increases in the host city as well as in the rest of the country, particularly during the opening and closing ceremonies.

Moreover, they encourage people to exercise more. In an as yet unpublished study, we found that in 2012, six per cent more people in London became physically active who otherwise did not do any sport. However, this effect only lasted for about 100 days. Additionally, alcohol and tobacco consumption decreased during the event. But health economic research also shows that it is difficult for policymakers to implement targeted measures to encourage more people to exercise on a regular basis.”