Fascinating take on the advantages of reducing parking spaces

Stand aside Freakonomics, here is a very real, very current, very practical application of economics, incentives and game theory to a universal city development problem. Provide fewer parking spaces to help manage the car and parking problem in congested downtown areas.

Bit by bit, for the past 40 years, the city of Copenhagen has done something revolutionary: The Danish capital has reduced its parking supply. Cutting the total number of parking spaces by a small percentage each year stands in stark contrast to the more common pattern of cities adding more and more parking to accommodate private cars.

It’s a longish article, but definitely worth reading. Hat-tip to Samora Adams of @CapeChat fame for the link.

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.