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
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
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...
Most of us already know that adopting new cloud applications can boost a business’s productivity by enabling organizations to be more agile and ready to change course in our fast-moving and connected digital world. But the rapid adoption of cloud apps and services also brings with it profound security threats, including visibility and control challenges that aren’t present in traditional on-premises environments. At the same time, the cloud – because of its interconnected, flexible and adaptable...
SYS-CON Events announced today that SoftNet 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. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and...
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining senso...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, will discuss the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docke...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...