But is increasing (through 'subsidy'/tax credit) consumption of diesel really desirable? Especially when we seem to be on the verge of practical electric cars.
As an engineer, I would dispute that we are on the verge of practical electric cars.....I know there are a number of models out. But they won't change the fleet mix for a while. And if they do, grid stability might become a real issue as all those gigajoules are now drawn from the electric grid, occasionally during peak times. We'll get there for sure. But I don't believe that change will be in the next 5-10 years (2 car sales cycles) in any meaningful way.
With that established, why not increase the consumption of diesel in the fleet mix. 2 cents may not seem like much, but like you pointed out we are dealing with relative prices here. Those 2 cents could have major impacts on the switch from gasoline to diesel, thereby lowering our GHGs.
Well, I think we can blame that on stingy provinces. Municipalities can't afford much infrastructure spending. No municipality is going to turn down a province's offer to pay the rest of the bill in favour of waiting for the feds to kick some in.
I agree with you here. My point simply was that in Canada we just seem to have a mentality where the federal government must be involved with everything. Most other places, cities are mature enough to have long term infrastructure plans and work on them a little at a time. All federal or provincial funding does is speed things up.
As I have pointed out in other places, the real fix for Toronto is a reversal of provincial downloading. We should be holding McGuinty to his promise. And we should be demanding more. The city should have no part in delivering social housing, welfare, and public health. In my mind, municipalities should only be responsible for roads, transit, parks and rec, and emergency services. Anything else should be delivered by higher levels of government.
I would also be more comfortable with a less ad-hoc federal infrastructure program. It leaves something of strategic national interest open to pork barrel politics and vast regional inequity.
One thing to keep in mind, is that many of the countries that provide federal funding have no intermediate provincial government to deal with....like the UK or France. I have nothing against the federal government using funds to speed up the attainment of certain strategic goals ie reducing GHG through transit use. As such, I would love to see a transit infrastrucuture fund created out of the gas excise tax. What is ridiculous is that the 2 cents they give now goes towards transit o&m in many places. This simply creates a dependency on federal funding and demands for more.