The Ontario Government recently announced plans to send each resident a one-time $200 cheque in early 2025. While this $3-billion initiative may offer much-needed financial assistance, albeit temporary, it also raises an important question: could these funds deliver more meaningful, lasting impact if directed elsewhere?
Imagine if $3 billion were invested in projects that improve air quality, reduce healthcare costs and lessen the economic burden on communities impacted by high pollution levels. Such an investment would create value beyond a one-time cheque, benefiting Ontarians far beyond the immediate future.
Many Ontarians are feeling the economic pinch from the rising cost of living, and this $200 will no doubt be helpful. But it’s worth noting that everyone, regardless of income, will receive this rebate – including those who may not need it as urgently. Redirecting these funds towards long-term solutions could help reduce healthcare costs and air pollution, benefiting socio-economically disadvantaged communities most directly.
These communities often face the greatest impact from poor air quality due to their proximity to highways, freight corridors, or industrial zones with high levels of diesel and commercial transport. With fewer resources to counter poor air quality and limited access to green spaces, residents face increased health risks. Investing in clean transportation could address these issues, leading to significant health improvements and cost savings.
The cost of status quo: Ontario’s gas and diesel dependence
Ontario’s reliance on diesel- and gas-powered vehicles poses a major health and economic burden. Health Canada estimates that in the Greater Toronto Hamilton Area (GTHA) alone, traffic-related air pollution contributes to 700 premature deaths and over 2,800 annual hospitalizations due to heart and lung conditions – an economic impact of over $4.6 billion per year. Investments in, for example, medium-duty electric vehicles, particularly school buses and public transit, could help reduce these burdens.
Ontario’s 20,000 school buses, 93% of which run on diesel, are a clear example of this challenge. Diesel exhaust contains well-established carcinogens and harmful pollutants, posing serious health risks, especially for children whose respiratory systems are still developing. Transitioning these buses would not only protect children’s health but also improve air quality for entire communities.
A path forward: Clean transportation in Ontario
Let’s consider what $3 billion could accomplish. Ontario lags other provinces in clean transportation, with just 10 electric buses compared to Quebec's 120 (projected to reach 1,229 by 2027). Redirecting $3 billion into Ontario’s clean transportation could accelerate EV adoption, creating healthier conditions for students and communities. Electrifying just 65% of Ontario school busses could create over 13,000 jobs, contribute nearly $2 billion to the economy, and cut annual emissions by about 234,000 tons of CO2.
To put this into context, Ontario’s $3 billion rebate budget exceeds the entirety of the federal government’s Zero Emission Transit Fund ($2.75 billion over five years), which has helped purchase over 5,000 zero-emission buses across the country. It also significantly exceeds Quebec’s $250 million investment over three years to electrify 65% of its school buses by 2030, as well as British Columbia’s Go Electric Program, which has allocated $650 million since 2011 for vehicle rebates and fleet charging. While these programs fund long-term improvements, the Ontario government intends to spend $3 billion in just one year, lacking the opportunity for lasting benefits.
Creating long-term value for Ontario
Transformative, sustainable investments like these would not solve immediate affordability concerns, but they offer steady, long-term reductions in health costs and other economic burdens. This means that, at an individual level, Ontarians could experience fewer air-quality health-related expenses and an improved quality of life over time.
By prioritizing electric vehicles, Ontario’s government has a unique opportunity to make an investment that pays off in lasting ways. This isn’t just an environmental choice, it's a step toward a healthier, more resilient and more competitive Ontario.
