1. The Renewal of Seoul City - A New Paradigm for Sustainable Development

2. Channel News Asia broadcasted Seoul’s story of its renewal as a sustainable city in its “Korea Sparkling” documentary series in August 2009.Also reported in New York Times in 16 July 2009

3. CGC Before And After

4. 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.

5. The “Curse” Of the Public Good

6. Before and After

7. Eliminating Congestion in Seoul Demand Reduction Deconstructing the CGC Highway Increase Price of Vehicle Use

8. Externalities

9. Deconstruction of the Highway

10. Increasing the Price of Vehicle Use

11. 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

12. Eliminating Congestion in Seoul Supply Reduction Reducing the Supply of Complements – Reducing Parking Supply Subsidising Reduction of Vehicle Use- “No Driving Day” Campaign

13. No Driving Day Programme

14. Economics of No Driving Day

15. Reforming Public Transport- Substitute for Vehicles

16. Increasing the Marginal Utility of Public Transport

17. Increase Interconnectivity

18. Increasing the Marginal Utility of Public Transport

19. Positive Externalities

20. ....Externalities Real estate values in the CGC district increased by an average of 30%. Temperatures in the CGC area about 3oC to 6oC lower than surrounding areas.

21. Conundrum.... What if Seoul City Government retained Highway but reformed the public transport system?

22. THANK YOU!