Estimating the true value of investing in the TTC — and the cost of choosing not to

Managing a large city like Toronto involves weighing the economic, social and environmental benefits of major infrastructure, such as investment in the Toronto Transit Commission (TTC), against the pressures of the annual budget cycle. A new analysis by a group of leading researchers from Mobility Network is helping city builders assess that balance more effectively.

The project began in 2022, when the TTC asked the Mobility Network if it would be possible to quantify, using concrete dollar amounts, the benefits of investing in the TTC, as well as demonstrate the costs of choosing not to invest. The team, which included engineers, geographers, and political scientists, built a multi-regional input-output model that enabled them to trace the economic benefits of investing in TTC operations and capital projects at the local, regional, provincial and national levels.

The team also built a travel demand forecasting model, which showed that capital and operating investments in the TTC reduce travel times for transit users and car drivers as well as providing social, equity, public health and environmental benefits. Interim results were presented to the TTC Board on December 20, 2023.

Overall, the team found that every $1.00 invested in the TTC yields approximately $7.14 in benefits. This benefit figure is made up of $1.08 in economic and regional development benefits — including the creation of more than a dozen new, non-TTC jobs for each $1 million in investment — and $6.06 in ‘quality of life’ benefits, including lower pollution, faster commuting times, reduced traffic congestion and reduced carbon emissions.

The project will wrap up in June 2024. By then, the team will have further refined these numbers and accounted for a wider range of possible scenarios. It is a shining example of how collaboration between government and academia can lead to better cities for the future.