What Would Coase Do? (About Parking Regulation)
27 Pages Posted: 30 Jun 2010
Date Written: June 30, 2010
Like many government regulations, municipal minimum parking requirements exist to prevent externalities - most notably the congestion, pollution and greenhouse gas emissions that occur when motorists drive around a city searching for scarce parking. But because such regulations make parking (and thus driving) cheaper, such regulations may in fact increase congestion and pollution, thus creating, rather than reducing, externalities.
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