The Market As Plan
There’s a good article in LA Magazine about UCLA parking theorist Donald Shoup. Shoup has made a name for himself (among urban planning nerds) by showing how urban land use practices systematically over-produce free and cheap parking, leading to all sorts of undesirable consequences for everyday life.
As Matt Yglesias says, Shoup’s views on parking can be reduced to two themes. First, “that governments should not force real estate developers, store owners, and other businessmen to build more parking than their own calculation of what the market balance of supply and demand is.” This is just the straightforward point that the state shouldn’t force the creation of things that have negative externalities and disproportionately benefit the already well-off. More interesting is the second theme, “that governments shouldn’t underprice street parking in a way that leads to Soviet-style shortages of available spaces and elaborate rationing rules about how long you’re allowed to stay in a given spot.” Yglesias, and Shoup, portray their position as a free-market alternative to the evils of central planning, surely a canny move for liberal audiences. But there’s something else going on here; consider this experiment in Los Angeles, as described in the LA Magazine article:
This spring the DOT plans to introduce an $18.5 million smart wireless meter system based on Shoup’s theories. Called ExpressPark, the 6,000-meter array will be installed on downtown streets and lots, along with sensors buried in the pavement of every parking spot to detect the presence of cars and price accordingly, from as little as 50 cents an hour to $6. Street parking, like pork bellies, will be open to market forces. As blocks fill, prices will rise; when occupancy drops, so will rates. In an area like downtown, ideal for Shoup’s progressive pricing, people will park based on how much they’re willing to pay versus how far they are willing to walk to a destination.