Study estimates reduced traffic congestion would boost annual provincial income tax revenues by $150 million
TORONTO—The hidden costs of congestion are between $500 million and $1.2 billion a year for the Metro Vancouver area, according to a new report from the C.D. Howe Institute.
Benjamin Dachis, author of the study Tackling Traffic: The Economic Cost of Congestion in Metro Vancouver, finds that when congestion causes people not to travel, it stifles the key benefits of living in a city.
These benefits, collectively called agglomeration benefits, include finding better jobs and sharing services and infrastructure.
“The hidden costs of congestion in Metro Vancouver are as large as the visible economic costs that the Mayors’ Council has presented so far,” says Dachis.
Dachis says that increased investment in transportation infrastructure, along with lower congestion, would economically benefit Metro Vancouver in two ways:
Dachis estimates that as a result of higher incomes from reduced traffic congestion, provincial and federal income tax revenues would be boosted by an estimated $150 million and $360 million per year, respectively.