When I was in Chicago a few weekends ago, one of the things we did was take the train from Midway Airport to downtown. We were a large group, but since it was only $2.25 and we figured it would be easier and faster than contending with traffic, we decided to take it.

Since it was their local transit service (as opposed to a dedicated airport rail line), the train came within a few minutes and it took us about 25 minutes to get to the Loop. It was a great experience. And I would take it again the next time I go to Chicago.

I mention this because there’s been a lot of debate in Toronto recently about the potential ticket price for the new Union Pearson Express train to the airport. Some are suggesting that it could cost upwards of $30 for a one way ride, which would also take 25 minutes and would leave every 15 minutes.

The concern is that at this price, the train will only serve the business community and the rich. And indeed, it’s a lot more than the $2.25 I paid when I landed in Chicago earlier this month. But at the same time the Union Pearson Express promises to offer a more refined travel experience than your regular old subway train. So how should it be priced?

Pricing exercises are really interesting because, as David Fitzpatrick pointed out in a recent tweet, increasing the price of the ticket will lower ridership. And at a certain point, this will cause overall revenues to also decline (the loss in ridership stops being made up by the higher ticket price). So, in theory at least, there exists a magic, profit maximizing number.  

Of course, profit may not be the only goal. One might also be interested in reducing the number of vehicles on the road, promoting sustainability, and generally providing people with a convenient way to get to and from the city’s biggest airport. And should this be case, then those factors also need to be worked into the pricing model.

Now, I don’t know what that magic number should be off hand, but I do think we need to be clear on our goals as that decision is made.

I personally believe that we underprice roads in this city, which is why we have such a supply and demand imbalance (i.e. gridlock). And so if we decide that rail travel should be a premium service, then I don’t think it’ll do much to correct that imbalance.

Traffic is a big deal when it comes to real estate development. Residents are almost always concerned about the additional traffic that a development might bring to their community. And who can really blame them. They’re frustrated by traffic as it is in the city and so they naturally assume that more residents in their community will translate into more cars on the road.

But as natural as this reaction might seem, I don’t believe that opposing intensification is the right long-term solution. In fact, I would argue that the question of traffic is a bit of a red herring. Because as Toronto’s Chief Planner Jennifer Keesmaat explains in this blog post, density can actually go a long way to reducing traffic congestion. And it does that by placing people closer to where they work, and by creating an environment that’s more conducive to other forms of mobility: walking, biking, and public transport.

So instead of becoming fixated on traffic, I think there’s another, perhaps more relevant, question that we should be asking ourselves: Will this development, over the longer term, help to encourage a modal split that leads to more transit usage and less driving?

Because if it doesn’t, well then we’re not doing anything to correct the problem we already have. In fact, if we don’t allow intensification to happen, it means we’re simply pushing demand outwards, horizontally. And the more you push people out of a city, the more likely they are to drive. In which case we’re only delaying the inevitable – which is more traffic.

Image: Flickr

Regular readers of this blog will know that I’m a big supporter of road pricing. I think it’s an incredibly efficient way of reducing congestion, improving regional productivity, making us more sustainable, and funding other infrastructure, like transit.

But one of the arguments I often hear against road pricing is that it’s unfair to force a segment of the market out of their car if there’s no good alternative (ie. proper transit). And even if the revenue produced from road pricing goes towards transit, we all know that new infrastructure takes a very, long, time.

So we end up with a chicken and egg problem: Road pricing is a great way to fund transit, but it’s difficult to implement without the proper transit in place. So what should we do? What comes next?

I have two thoughts.

First, road pricing doesn’t necessarily mean that you can no longer drive without paying. Effective road pricing matches price with demand. Therefore if there’s nobody else on the road, you wouldn’t be paying (or at least wouldn’t be paying much). This is what makes it efficient—it adjusts. So for somebody without the willingness to pay for peak congestion pricing, they could still have the option of driving at another time. Go in early or go in later.

But what it does mean is that no matter what time you’re driving, the road could be priced so that it actually functions again. In Toronto today, many of our roads are completely failing. Demand greatly exceeds available supply (the amount of road we have) and so you can’t use them to get anywhere in an efficient way. So what we have is equal access to terrible non-functioning roads.

Second, there’s no such thing as a free lunch and nobody said it was going to be easy to build phenomenal infrastructure. We all complain and say we want it, but when push comes to shove, are you willing to open up your wallet and pay for it?

So I say forget pontificating about chickens and eggs and just do it. If we priced roads and setup other appropriate revenue tools, I’m sure there are some financial wizards in this city that could use tax increment financing or other mechanisms to ensure that we get shovels in the ground today for the new infrastructure that we so desperately need.

These are important discussions to be having no matter what city you live in. I would love to hear your thoughts in the comment section below or on twitter.