Report warns cost of mobility pricing must be ‘fair’
Report urges public transit expansion, credit for people with low income
Proposed mobility pricing in Metro Vancouver needs to be perceived as “effective and fair” for it to succeed in reducing road congestion, a new report says.
The report, released today, says that implementing a system of charging drivers of cars and trucks for using the region’s transportation system is based on the principle that users should pay. Mobility pricing challenges what the report calls the “illusion of free roads.”
But to do that, mobility pricing needs to address three key issues:
Ensuring low-income people aren’t penalized by introducing a credit
Expanding public transit Levelling the playing field with other modes such as ride-hailing
“Getting vehicle users (who make 69 per cent of trips in the region) on board is not impossible, but will require a pricing package that is perceived to be effective and fair,” Marc Lee said in Getting Around Metro Vancouver: A closer look at mobility pricing and fairness.
POLITICAL HURDLES
“If it can overcome the political hurdles, well-designed mobility pricing — implemented with complementary policies and public investments — could be an important part of managing congestion and accelerating the shift away from vehicle dependency.”
The report is by the Canadian Centre for Policy Alternatives.
Lee is a senior economist with the centre’s B.C. office.
In Metro Vancouver, the Mobility Pricing Independent Commission was formed in June, 2017 to look at some form of mobility pricing for the region.
After public consultation, the commission issued a report in January saying that it is looking at two options: charging drivers for each kilometre driven and tolling congestion points such as bridges. A recommendation from the commission is expected in a few weeks, according to Lee’s report.
Between 2001 and 2016 the number of registered vehicles grew by 37 per cent in Metro (not including Squamish, Abbotsford and Chilliwack); population growth during that same period was 22 per cent.
“The perception … that drivers fully pay for their rides is false,” Lee says in the report.
Public costs include building and maintaining roads and bridges, policing, subsidies for fuel production, and parking as well as external costs such as air pollution and noise account for about 40 per cent of the total cost of driving by car and truck. In Metro Vancouver, that public subsidy amounts to about $3.5 billion.
Whatever method of mobility pricing the independent commis- sion eventually recommends, the report says that it “is likely to fail if it is perceived to be unfair.”
While the user pay principle is superficially attractive, it doesn’t take into account what the report calls the ability to pay.
That means considering how mobility pricing affects, for example, the working poor who may have no option to drive a vehicle because the high cost of housing is dispersing them further away from urban centres. The report recommends an equity plan that includes a credit for low and middle-income households similar to the carbon tax credit which is funded out of carbon tax revenues.
As well, investing in buses, subways and public transit is the only way to ensure “accessible mobility for all residents over the long term.”
The report points out using mobility pricing revenue to improve public transportation was a major selling point in the successful introduction of mobility pricing in both London, England and Stockholm, Sweden.
Plus, mobility pricing should also include ride-hailing and carsharing.
Lee’s report cites one U.S. study in seven U.S. cities found that “ride-hailing can worsen congestion not just due to passenger rides but also because of ‘dead-heading ’ miles, where passenger-less vehicles drive around.”
Well-designed mobility pricing … could be an important part of managing congestion.