Welcome!

News Feed Item

New RCCAO Study: Taxing Motor Gas and Diesel Fuel in the GTHA. Will This Generate Sufficient Revenue?

TORONTO, ONTARIO -- (Marketwired) -- 06/20/14 -- A groundbreaking study released today by the Residential and Civil Construction Alliance of Ontario shows that Fuel taxes to pay for transportation infrastructure is a "second best" option when compared to road and parking pricing.

The breakthrough report, prepared by Professor Harry Kitchen of the Department of Economics at Trent University in Peterborough, ON, was commissioned by the RCCAO to explore how much revenue might be generated from a GTHA-wide fuel tax over the next 20 years. Kitchen concludes "that gas and diesel fuel tax revenues are unlikely to generate enough revenue to fund future road and transit expansions and that it is a blunt instrument to address congestion."

Instead, he recommends that innovative parking technologies and levies as well as road pricing will prove to be much more effective at reducing traffic congestion while at the same time generating revenue to fund transportation/transit projects.

Among Kitchen's findings:


--  Fuel taxes to pay for transportation infrastructure is a "second best"
    option when compared to road and parking pricing.

--  Dedicated fuel taxes will result in additional revenue, but these monies
    will not shift driving behaviour during peak travel times.

--  Fuel tax revenues have helped municipalities fund some infrastructure
    needs, but these revenues have not increased in 20-years and are likely
    to decline due to an increase in more fuel efficient vehicles, an
    increasing reliance on electric and hybrid vehicles and people simply
    driving less. Hence, other revenue sources must be implemented to offset
    these losses.

--  As an alternative to fuel taxes, provincial politicians must stand up
    and take a good look at parking levies and road tolls as better ways to
    fund road and transit in the future.

--  Parking is currently inefficiently priced and tends to promote cruising
    for on-street parking in high-demand areas. Consequently, drivers spend
    a lot of time looking for a vacant spot which adds to traffic
    congestion, pollution, and results in lost productivity.

--  Efficiently implemented parking levies, including progressive pricing
    (where prices increase for longer stays), will result in better turnover
    of vehicles and will increase municipal revenue. Deployment of cell-pay
    parking will result in lower policing and traffic enforcement costs.

--  Road pricing applied at a regional scale is widely recognized as an
    effective travel demand management tool to internalize congestion,
    pollution, and other external costs of driving. More so than parking
    fees, they can influence all dimensions of travel choice: trip
    frequency, destination, travel mode, time of day or week and route.

--  Tolls can generate significant sums of revenue. In 2011, Highway 407
    International earned gross revenues of $675 million (net income $128.3
    million). The Province of Ontario plans to implement tolls on the new
    407 East which will be built over the next few years.

--  In comparison, it is estimated that a one-cent fuel tax increase will
    yield about $90-million per year. Fuel tax revenues are not expected to
    increase by any notable amount over the next two decades. It's debatable
    if a fuel-tax increase will generate an adequate and sustainable source
    of revenue.

--  Road pricing and parking levies/taxes are a "first-best" policy. These
    instruments target those who use the roads, and are effective in
    tackling congestion and the problems that it creates.

Professor Kitchen's findings provide a cautionary tale. "While this revenue stream will continue to be an important source of revenue to fund transportation infrastructure in the coming years, it should not be relied upon indefinitely," said Andy Manahan, Executive Director of the RCCAO.

A full copy of the report can be viewed at: http://www.rccao.com.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, showed how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningful f...
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captu...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, will discuss recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model f...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...