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Home Policy Articles: Regional & Sectoral: Transport


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Canada and the liberalization of air transport markets over the Atlantic

Jeanniot considers liberalization of the air market advantageous and wonders why such timid steps are being taken. He suggests that Canada should take the lead and act more significantly in liberalizing the air transport markets over the Atlantic.

Canada's Future Rail Policy: Is Politics Derailing Good Economics?

This article, by Gilles Rheaume and Andrew Shea, examines Canada’s rail policy and its options for the future. In particular, it examines one question – a question Rheaume and Shea consider to be fundamental: should Canada adopt an open market based on “competitive access,” or maintain its current system (which is favourable to CN and CPR)? The authors consider an analysis by the Canada Transportation Act Review Panel that is relevant to this question. In short, they agree with the Panel, that there was no evidence to suggest that either railway earned excessive financial returns.

Canada’s Transportation Infrastructure Challenge: Strengthening the Foundations

This report, by Brown, Hoover, Howatson and Schulman, is the result of research examining how transportation infrastructure investment is governed and funded in Canada and other key countries. It identifies the shortcomings in the Canadian transportation system, considers the pros and cons of various options, and identifies possible solutions to current gaps. Brown identify the major governance objectives, funding objectives, governance characteristics, and funding instruments used in the transportation sector.

Congestion Relief: Assessing the Case for Road Tolls in Canada

Robin Lindsey argues that the implementation of road tolls on Canadian roads, highways, and urban centres merits serious attention.

Excess Baggage: Measuring Air Transportation's Fiscal Burden

Ben Cherniavsky and Benjamin Dachis begin their Commentary with the premise that Canadians consider the air transport sector to be significant to the national economy.

Fair Fares Calgary Celebrates Reduced Fare Transit Passes

On August 1, 2005, Calgary’s City Council opted to give reduced fare transit passes to residents who receive benefits from the Assured Income for the Severely Handicapped (AISH) program. Subsequently, it decided to issue these passes to all low-income residents in Calgary beginning in January 2006. Vibrant Communities Calgary will work with Calgary’s municipal government and Alberta’s provincial government to develop a long-term funding solution.

Fixing the Potholes in North American Transportation Systems

Norman Bonsor argues that over the past two decades the Canadian economy has not only become more dependent on the US market for its exports, but it has also become increasingly more integrated with the US economy on a fundamental microeconomic level.

Housing and Transportation in Montreal – How suburbanization is improving the region’s competitiveness

In his report, Wendell Cox contends Montreal’s superior transport infrastructure and its land use policies give the city a new advantage.

How to make the Canadian airline industry more competitive

Air transport is no longer considered a luxury. More Canadians are traveling by air and more goods from foreign trade are being transported by airplane. In this economic note Stéphanie Giaume, in collaboration with Martin Masse, discusses the negative impact of the heavy tax burden.

Mapping the New North American Reality: The Road Sector

In this paper Mary Brooks argues that on the trade front, NAFTA has been a huge success, yet road transportation has received inadequate attention despite the obvious and central role trucking plays in trans-NAFTA commerce.

Mission Possible: Successful Canadian Cities

In this report, Natalie Brender, Marni Cappe, and Anne Golden begin with the premise that Canada’s prosperity depends on the success of its major cities.

Nav Canada: A Model for Commercializing Public Enterprises

In Nav Canada: A Model for Commercializing Public Enterprises, Robert Poole Jr. and Viggo Butler discuss the Canadian experience with air traffic control reform and apply it to the US. As the authors note, the nature of air traffic control does not lend itself to a competitive business model, rather it is typically a government-controlled monopoly. This does not, however, preclude government from commercializing air traffic control corporations.

New Destinations in International Air Policy

Dymond and de Mestral argue that a transformation is taking shape in the policy framework under which airlines are organized and operate international air services. They note that since the early age of commercial air travel, international air services have been governed by intergovernmental bilateral agreements; until recently, these agreements were micro-managed operations. In this context, the authors point out that while much of this micro-management has fallen away, the regulation of international air services will remain part of the scope of bilateral agreements.

Public Auto Insurance: A Mortality Warning for Motorists

In this brief report Mark Mullins argues that provinces with public auto insurance schemes have higher rates of auto collision, death, injury, and property damage than those with market-based insurance. He notes that death, injury, and property damage rates are even higher for young drivers in these provinces. Mullins further contends that unique provincial characteristics do not account for the greater death and damage statistics; he suggests the likeliest explanation, rather, is that the public system produces too many subsidized drivers of a higher risk.

Reaching the Tipping Point: Effects of Post-9/11 Border Security on Canada’s Trade and Investment

In this report, Danielle Goldfarb notes how increased border security at Canada-US crossings has had economic ramifications for Canadian exporters.

Roads, Trains and Ports: Integrating North American Transport

In this paper David Eaton argues that Mexico has historically enjoyed three advantages in the global economy: proximity to the US, a cheap exchange rate, and low cost labour.

Sustainable Urban Transportation: A Winning Strategy for Canada

Natalie Brender and Anne Golden argue that the growth of cities as the centre of a knowledge economy requires that Canada’s transportation policy work to improve and encourage public transportation.

The Approaching Global Energy Crunch: And How Canada Should Meet It

In this report, Robert MacIntosh considers where Canada’s energy resources fit into the global outlook for energy, and what this means for the nation and its public policies. MacIntosh argues that global prices for oil and gas will continue to increase more than has generally been assumed; he questions how the market will respond to this continued increase. MacIntosh also asks how investors in primary energy resources plan to meet the growing risks, and what impact the market will have on alternative energy sources.

The North American Auto Industry

This brief report serves as the introduction to Mapping the New North American Reality, a series of brief articles written by Canadian, American, and Mexican policy experts exploring the nature of North American economic integration.

The Route to Prosperity: Transportation and the Western Canadian Economy

This brief report, prepared by Susan McFarlane, looks at the West’s current transportation system and uses illustrative examples to highlight the increased demands being placed on the entire system. McFarlane also examines the collective trends facing the transportation system.

Turbulence in the Skies: Options for Making Canadian Airline Travel More Attractive

In this report Fred Lazar focuses on recommendations set out by the Canada Transportation Act Review Panel on permitting foreign entry into the domestic airline market. He also focuses on the competitive landscape in passenger aviation services in Canada.

Unaccountable: The Case of Highway Maintenance Privatization in Alberta

In 1995-96, the Government of Alberta decided to outsource all the maintenance on its 15,000 kilometres of primary highways to primary contractors. Since then, neither the provincial government nor any other body has evaluated the current private maintenance program by comparing it with the previous government-run system.