Been in the Netherlands recently and the small residential roads, ones only just wide enough for two cars to pass, all have cycle lanes in red tarmac down each side like this:
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Most of the time as a driver you straddle the cycle lane and use the road as if it wasn’t there, but if you come across a cyclist they take priority and if you’ve got oncoming traffic you just have to wait to overtake. Works really well and from what I understand cyclists would rather be on the road than the pavement for the surface. Can’t imagine it would cost much either.