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Noting that traffic congestion is costing the Canadian economy billions, the report asserts that building more road capacity is not the answer, as it often promotes more traffic: “Accurate transport pricing aims to ensure that people face the true costs of their travel decisions.”
Donovan’s report details the Swedish experience. Stockholm first experimented with accurate transport pricing in 2006, after which it held a referendum on implementation: 53 per cent approved. Peak traffic volumes in Stockholm declined by about 25 per cent.
Public planners tend to look for big, dramatic solutions — social engineering, infrastructure construction and so on — when small economic signals might have the same desired effect.
Traffic in Canada could be more evenly spread out during the day the roads more efficiently—if market pricing was used.
Instead of increasing road capacity, Canada’s government agencies should implement accurate transport pricing.
Instead of increasing road capacity, Canada’s government agencies should implement accurate transport pricing.
“Introducing competition and competitive contracting into a system now dominated by union and operating monopolies, combined with a shift in reliance from rail to buses, would go a long way toward curbing costs and increasing productivity.”
“The Frontier Centre for Public Policy compared airline fares on similar-distance flights in all three jurisdictions and found that fares were the most expensive in Canada.”
“A study from the Winnipeg-based Frontier Centre For Public Policy surveyed five cheapest-fare 3,300-mile flights and found: Canadian passengers pay an average fare per mile of 45 cents, Americans pay 28 cents, Europeans pay 16 cents.”