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A model for estimation of the demand for on-street parking

Author

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  • Gragera, Albert
  • Hybel, Jesper
  • Madsen, Edith
  • Mulalic, Ismir

Abstract

This paper presents a stylised econometric model for the demand for on-street parking with focus on the estimation of the elasticity of demand concerning the full cost of parking. The full cost of parking consists of a parking fee and the cost of searching for a vacant parking space (cruising). The cost of cruising is usually unobserved. Ignoring this issue implies a downward bias of the elasticity of demand for the total cost of parking since the cost of cruising depends on the number of cars parked. We demonstrate that, even when the cost of cruising is unobserved, the demand elasticity can be identified by extending the econometric model to include the spatial interaction between the parking facilities. We illustrate the model with on-street parking data from Copenhagen and find indications of a somewhat greater parking demand elasticity than is usually reported in the literature.

Suggested Citation

  • Gragera, Albert & Hybel, Jesper & Madsen, Edith & Mulalic, Ismir, 2021. "A model for estimation of the demand for on-street parking," Economics of Transportation, Elsevier, vol. 28(C).
    • Handle: RePEc:eee:ecotra:v:28:y:2021:i:c:s2212012221000368
    DOI: 10.1016/j.ecotra.2021.100231
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    Cited by:

    1. Haustein, Sonja & Kroesen, Maarten, 2022. "Shifting to more sustainable mobility styles: A latent transition approach," Journal of Transport Geography, Elsevier, vol. 103(C).
    2. Eliasson, Jonas & Börjesson, Maria, 2022. "Costs and benefits of parking charges in residential areas," Transportation Research Part B: Methodological, Elsevier, vol. 166(C), pages 95-109.
    3. Gragera, Albert & Hybel, Jesper & Madsen, Edith & Mulalic, Ismir, 2021. "A model for estimation of the demand for on-street parking," Economics of Transportation, Elsevier, vol. 28(C).
    4. Piccioni, Cristiana & Valtorta, Marco & Musso, Antonio, 2019. "Investigating effectiveness of on-street parking pricing schemes in urban areas: An empirical study in Rome," Transport Policy, Elsevier, vol. 80(C), pages 136-147.
    5. Gragera, Albert & Albalate, Daniel, 2016. "The impact of curbside parking regulation on garage demand," Transport Policy, Elsevier, vol. 47(C), pages 160-168.
    6. Albalate, Daniel & Gragera, Albert, 2017. "The determinants of garage prices and their interaction with curbside regulation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 101(C), pages 86-97.
    7. Zakharenko, Roman, 2016. "The time dimension of parking economics," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 211-228.
    8. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    9. Yan, Xiang & Levine, Jonathan & Marans, Robert, 2019. "The effectiveness of parking policies to reduce parking demand pressure and car use," Transport Policy, Elsevier, vol. 73(C), pages 41-50.
    10. Evangelinos, Christos & Staub, Nelly & Marcucci, Edoardo & Gatta, Valerio, 2021. "The impact of airport parking fees on the tourist's airport/airline choice behavior," Journal of Air Transport Management, Elsevier, vol. 90(C).

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    More about this item

    Keywords

    On-street parking; Demand estimation; Cruising-for-parking;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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