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Would you like a personalised pothole?

Penny Brooks

11th March 2010

Local councils all over the country are despairing over how they are to find the money needed to repair the cavernous pot holes that have opened up after the snow, ice and rain this winter. Insurance companies are starting to talk about the need to raise their premiums to cover the number of claims that have been made for repairs to damage caused to cars falling down these holes – at least two of my students have suffered from burst tyres and other problems as they learn the hard way how dangerous the holes can be. Some of the wilder estimates have suggested that it might take almost as long to repair all the roads as it will to pay off the fiscal deficit. But a small town in Germany has a different solution; they are inviting people to sponsor a pot hole, and so pay for its repairs. For just 50 euros you could have your name stamped into the tar repairing holes such as the beauty pictured above, which is in Niederzimmern in the Weimar area of Germany.

Maintaining the roads would usually be seen a as an example of a market failure because the private sector cannot profitably provide the service, so it has to be provided by local or state government. In this case, the Mayor of Niederzimmern is turning the situation into a market opportunity, with utility to be gained by the sponsor who gains some value from seeing their name stamped into the tarmac on the road! But the idea is not so different to the approach taken by businesses ‘sponsoring’ roundabouts on roads in the UK, and planting flowers on them in return for signs advertising their names there. This BBC video report gives more details of the scheme in Germany, and if you are really keen, take a look at the Niederzimmern website, complete with English language translation, listen to their ‘Pothole song’ and view their beauty parade of pot holes awaiting sponsors! If my translation is correct, so far they have found sponsors for 111 pot holes, so hurry before the opportunity has gone!

Penny Brooks

Formerly Head of Business and Economics and now Economics teacher, Business and Economics blogger and presenter for Tutor2u, and private tutor

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