1. Free parking at businesses, housing developments, even single-family homes is quite often mandated by regulation. In many cities, if you build a new apartmen

1. Free parking at businesses, housing developments, even single-family homes is quite often mandated by regulation. In many cities, if you build a new apartment building, shopping mall, etc., you're required by law to also construct a proportional quantity of parking, even if that goes against your judgement as to the best use of space and resources. See http://www.nytimes.com/2010/08/15/business/economy/15view.html?_r=0 http://www.nytimes.com/2010/08/15/business/economy/15view.ht... and http://www.amazon.com/The-High-Cost-Free-Parking/dp/1884829988 http://www.amazon.com/The-High-Cost-Free-Parking/dp/18848299.... 2. No one's calling for the guillotine for all car owners (that would include me!). But democratic governments are a function of their citizens. If externalities are not being internalized, it's because there is some powerful faction -- drivers, in this case -- that benefits from the status quo. Yes, the US govt is dysfunctional, but go ahead and try surveying the US public about a carbon tax that would raise gas to $10/gallon. It's not just some abstract 'government' that favors subsidies here -- it's pretty much the entire citizenry.