Creative Class

The latest issue of Martin Prosperity Insights is out. Read it here.

Stimulus and infrastructure building are all the rage these days. Our project on the crisis and the future of Ontario tackles infrastructure options. Led by civil engineer Chris Kennedy, whose forthcoming book The Wealth of Cities examines the role of infrastructure historically in powering economic growth, the report provides a framework for thinking about and investing in the future. The Toronto Star’s Sandro Contenta reports:

The report estimates the total cost of infrastructure work at up to $27.5 billion. But they say their recommendations address the two most pressing issues today – global warming and global recession. The report proposes 560 kilometres of high-speed electric track that runs from Toronto north to Orillia, east to Peterborough and west to a corridor that includes Waterloo, Hamilton and Niagara Falls. It would take at least a decade to build and cost anywhere from $4 billion to $20 billion, depending on the route and technology chosen.

The rail system would help create a high-density “mega-region” by improving transportation and attracting what the report calls well-paid “creative” jobs, such as those in aerospace, finance and telecommunications. “A high-speed rail network knitting Ontario’s cities together could revolutionize the province’s role within the continental and global economic systems,” it says …

The provincial government plans a 15 per cent reduction in greenhouse gases, below 1990 levels, by 2020, and an 80 per cent reduction by 2050. The report describes Ontario’s plan to phase out coal-burning energy and Metrolinx’s proposed transit projects during the next 25 years as important steps. But it adds that Ontario’s population is expected to increase to about 15 million by 2021 – with half of the 2 million growth in the Toronto region – and more needs to be done …

A scenario in which 25 per cent of Ontario cars are plug-in hybrids would require an extra 2,500 megawatts of electricity during peak nightly hours, when most would be recharging their cars. It would cost between $5 billion and $7.5 billion to build the extra nuclear and wind power needed, spread over a 10-year period, the report says. The move could also put Ontario at the forefront of the emerging hybrid auto sector, it argues.

The report emphasizes “mobility hubs” built around high-speed rail stations that connect passengers to local buses, trains and subways. The government should zone land around these hubs to allow for a high-density mix of residential and commercial buildings, it says. Highway congestion would be reduced by high-speed trains that can travel, depending on the technology used, from 130 to 400 km/h, the report says. This high-speed link could eventually be extended to Ottawa, Montreal, Chicago and New York, the report says.

(Graphic via the Toronto Star).