Parking

With the rising middle class, increasing purchasing power and a better functioning used car market, the number of households owning a vehicle in Chennai has increased dramatically since my last visit (2004). This was one of the first things I noticed upon landing here a few weeks back.

Unfortunately, both the roads (number and quality) and parking spots (number) have not kept pace with these changes. As a result, its a real hassle to find parking in the city centers. People end up parking anywhere they please and that disrupts the already unruly traffic.

In this situation, what is completely baffling is the fact that the city-set price for parking has not changed appreciably in a very long time. In most areas of Chennai it is free and in some of the city centers, its about Rs. 10 for an entire day (less than $1 in purchasing power terms). In a normal functioning market, you'd expect the price of parking to increase since supply has remained the same and demand has increased. (I would also argue that the market clearing price of parking should reflect externalities conferred on other drivers, such as the annoyance of having to walk an extra two blocks to get to the Music Academy and the disruption of traffic on the still-thin roadways).

At some point, the city government needs to charge more for parking. Rs 10 is well below the market clearing price and it really sucks right now to park, drive, get anywhere in the city.