The renewal of Seoul as a sustainable city presents an interesting case study on how economic concepts can be applied to the analyses of public policy. This presentation attempts to assess Seoul’s urban renewal policies using economic concepts of demand and supply, substitution, externalities, and marginal utility. economic concepts are rarely disparate.
Policy Implications Pricing mechanisms, while effective in reducing vehicle use, may not be optimal for significantly reducing vehicle use. Assuming that the SCG did not regulate the supply of vehicles, pricing mechanisms will only “price” out consumers who are unable to pay the increased price for using their vehicles
Eliminating Congestion in Seoul Supply Reduction Reducing the Supply of Complements – Reducing Parking Supply Subsidising Reduction of Vehicle Use- “No Driving Day” Campaign