Travel delays caused by gridlock are costing Ontario approximately $56.4 billion each year, according to a new report.
The losses are the result of limited movement of goods and services, decreased worker productivity, forgone job opportunities due to unpredictable commute times, and a lower quality of life, said the Canadian Centre for Economic Analysis.
In the Greater Toronto and Hamilton Area (GTHA), home to some of Ontario’s largest and most populous cities, congestion has the greatest impact, said the report, with almost half of commuters experiencing heavy congestion three or more times a week this year, compared to just under 20 percent of commuters in the rest of the province.
“The cumulative effect of congestion undermines the region’s capacity to sustain growth and erodes the prosperity of its communities,” reads the report. “Congestion substantially reduces life satisfaction for residents and has a significant economic cost, amounting to billions of dollars in lost productivity annually.”
The study evaluated the impact of congestion from both economic and social perspectives. Economic costs include delays in goods and services, reduced worker productivity due to longer commutes, decreased business revenue as residents struggle to travel and shop, and limited access to job opportunities.
The report found that Ontario experienced an economic loss of $12.8 billion this year due to gridlock, with the GTHA accounting for nearly 80 percent of the losses. Congestion has cost Ontario an estimated $35.5 billion since 2014, as well as 112,000 fewer jobs over the decade, according to the report.
The study’s social variables included factors such as life satisfaction, stress levels, and lost time, all of which were quantified by linking life satisfaction to income. However, instead of measuring life satisfaction levels based on income gains, the authors reversed the approach, translating life satisfaction data into monetary terms.
The report found that Ontarians lost $43.6 billion in social value due to the negative impacts of congestion this year, with the GTHA again accounting for almost 80 percent of the losses. “Congestion has a profound impact on the satisfaction with life and well-being of Ontarians, particularly those residing in the GTHA,” the authors wrote.
Since 2001, the number of cars on the road has increased by 37 percent in the GTHA, compared to 17 percent outside the area, according to the report.
If Ontario’s population grows as projected for the next two decades and congestion levels remain the same, the authors estimate an additional 696,000 commuters will experience intense gridlock across the province by 2044. If congestion improves, the number of additional commuters would be limited to 128,000 by that year, according to the report.
“Tackling congestion is essential to unlocking Ontario’s economic potential and significantly improving the well-being of commuters, especially in the GTHA,” the report said.
