Canadian Transportation Economic Account, 2014
Households produced $140.4 billion of transportation services
Output for total transportation activity, as defined by the Canadian Transportation Economic Account (CTEA), is estimated to have been $342.0 billion in 2014. The total contribution to gross domestic product (GDP) was $153.4 billion, representing 8% of Canada's total GDP.
The CTEA estimated that households produced $140.4 billion of transportation services in 2014. Output by the for-hire transportation industries was $160.1 billion, while own-account production of air, rail, water and trucking in the non-transportation industries was $41.5 billion.
The CTEA provides an expanded measure of the transportation services produced in the Canadian economy. In addition to measuring traditional for-hire transportation services, it provides an explicit measure of transportation services produced by non-transportation industries in the process of conducting their core business activities. New for this release, the CTEA estimates the transportation services produced by households, for example, in the form of driving to work or recreational activities. This product provides users with a consistent framework for analyzing the impact of all transportation activities on macroeconomic and environmental variables such as GDP, energy use and pollutant emissions.
Valuing household transportation services increases gross domestic product by $58.3 billion
Treating the household production of transportation services as a productive activity increases the total Canadian GDP by $58.3 billion. In final expenditures, motor vehicle purchases of $67.2 billion are removed from household consumption and added to investment in machinery and equipment. Motor vehicle operating expenses are also shifted from final consumption (-$82.1 billion) to industry use. These reductions in household expenditures are mostly offset by an increase in the consumption of the new household produced transportation services (+$140.4 billion), for an overall net decrease in household consumption expenditures of $8.9 billion.
Share of own-account transportation by industries decreases in 2014
Own-account production of air, rail, water and truck transportation services by the non-transportation industries was $41.5 billion in 2014. The share of own-account production in the total domestic supply of these four modes of transportation declined from 32% in 2013 to 30% in 2014. The large increase in for-hire trucking (+$5.9 billion) in 2014 accounted for most of the shift in the total relative shares of own-account and for-hire transportation services.
Own-account water transportation production was $922 million in 2014. Its share in the total output of water transportation declined by two percentage points to 15% in 2014, mainly due to lower production in the forestry and logging industry.
Own-account production of rail transportation was $693 million, and own-account production of air transportation was $665 million. These capital intensive modes are inefficient to produce as an own-account activity.
Most industries use more own-account trucking services than for-hire trucking services
Canadian industries used 52% of own-account trucking services for their trucking transportation requirements in 2014. Most industries produced more own-account trucking than purchased trucking services, except for the agriculture, forestry and manufacturing industries. Retail trade used about 11.7 times more own-account trucking services than purchased trucking transportation services.
Agriculture and forestry used about 3.5 times more own-account than purchased water transportation. These two industries covered over 60% of total own-account production and use of water transportation.
The biggest users of own-account rail transportation, the mining, oil and gas industries, accounted for 2% of total production of rail transportation services. Similarly, own-account air transportation represented 3% of total air transport production, and was mainly used by the government and by the mining and oil and gas industries.
Note to readers
The Canadian Transportation Economic Account (CTEA) estimates are a supplement to the Canadian Supply and Use Tables (SUTs). They provide a comprehensive measure of both own-account and for-hire transportation services.
The CTEA presents own-account transportation by each mode as a separate industry. Therefore, in addition to the 12 existing for-hire transportation industries (air transportation, rail transportation, water transportation, truck transportation, transit ground passenger and scenic, urban transit system, taxi and limousine services, other transit and scenic, pipeline transportation of gas, crude oil and other transportation, support activates for transportation, and postal services couriers and messengers), five new own-account transportation industries are introduced in the CTEA, one for each of the four primary modes of transportation (air, rail, water and truck) and one for Household Production of Transportation Services (HPTS) industry.
Valuing the production of own-account transportation services by industries has no impact on value added by industry and total GDP. However measuring HPTS, in the macroeconomic framework, increases GDP by the amount of depreciation and by certain taxes on motor vehicles owned by households.
The CTEA consists of four tables:
Supply: The supply table is a product by industry matrix that shows how much of each product is produced by each industry, as well as imported from outside Canada.
Use: The use table is a product by industry matrix that shows how much of each product is used by each industry as an intermediate input. It also shows use by final demand categories (such as personal expenditure, investment and government consumption), inventories and exports.
Direct requirements: The direct requirements table is a product by industry matrix that shows the cost of each product used by an industry per dollar of industry output, including the costs of for-hire and in-house transportation.
Total requirements: The total requirements table is an industry by product matrix that shows the sum of direct and indirect industry output required to produce a product for use by final demand (household consumption, government consumption, capital formation, and international exports).
Additional information can be found in the document "Transportation Economic Account: Sources and Methods."
For more information, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca).
To request the Canadian Transportation Economic Accounts, or to enquire about the concepts, methods or data quality of this release, contact Andreas Trau (613-951-3466; firstname.lastname@example.org), Industry Accounts Division.