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On the optimal target curbside parking occupancy rate

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  • Arnott, Richard

Abstract

Donald Shoup, following Vickrey, has long advocated cashing out free and underpriced parking. How should this be implemented for curbside parking in practice, considering the stochasticity of curbside parking vacancies? Shoup has proposed adjusting meter rates such that, for each block and time period, a target (average) curbside parking occupancy rate of 85% is achieved. This paper develops a simple structural model of stochastic steady-state curbside parking in an isotropic space, solving for the surplus-maximizing occupancy rate and the corresponding meter rate. By increasing curbside occupancy, a curbside parker imposes a curbside parking externality. The optimal meter rate internalizes this externality. The central comparative static result is that, ceteris paribus, the optimal occupancy and meter rates are higher, the higher is demand relative to curbside parking capacity. This suggests that, in practice, the occupancy rate should be higher in more trafficked locations and at busier times of the day.

Suggested Citation

  • Arnott, Richard, 2014. "On the optimal target curbside parking occupancy rate," Economics of Transportation, Elsevier, vol. 3(2), pages 133-144.
    • Handle: RePEc:eee:ecotra:v:3:y:2014:i:2:p:133-144
    DOI: 10.1016/j.ecotra.2014.07.001
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    References listed on IDEAS

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    Cited by:

    1. Jin Xie & Xiaofei Ye & Zhongzhen Yang & Xingchen Yan & Lili Lu & Zhen Yang & Tao Wang, 2019. "Impact of Risk and Benefit on the Suppliers’ and Managers’ Intention of Shared Parking in Residential Areas," Sustainability, MDPI, vol. 12(1), pages 1-17, December.
    2. Wang, Xiaotian & Wang, Xin, 2019. "Flexible parking reservation system and pricing: A continuum approximation approach," Transportation Research Part B: Methodological, Elsevier, vol. 128(C), pages 408-434.
    3. Nourinejad, Mehdi & Roorda, Matthew J., 2017. "Impact of hourly parking pricing on travel demand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 98(C), pages 28-45.
    4. Phuc Hai Hoang & Shengchuan Zhao & Siv Eng Houn, 2019. "Motorcycle Drivers’ Parking Lot Choice Behaviors in Developing Countries: Analysis to Identify Influence Factors," Sustainability, MDPI, vol. 11(9), pages 1-15, April.
    5. Arnott, Richard, 2014. "On the optimal target curbside parking occupancy rate," Economics of Transportation, Elsevier, vol. 3(2), pages 133-144.
    6. Arnott, Richard & Williams, Parker, 2017. "Cruising for parking around a circle," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 357-375.
    7. Levy, Nadav & Render, Marc & Benenson, Itzhak, 2015. "Spatially explicit modeling of parking search as a tool for urban parking facilities and policy assessment," Transport Policy, Elsevier, vol. 39(C), pages 9-20.
    8. Junheng Yang & Xiaodong Zang & Qiang Luo & Liming Shao, 2021. "Analysis on Stability of Roadside Parking System in a Rail-Integrated Transport Hub," Sustainability, MDPI, vol. 13(9), pages 1-16, April.
    9. Juan Li & Jing Ye & Qinglian He & Chunfu Shao, 2016. "A Novel Scheme to Relieve Parking Pressure at Tourist Attractions on Holidays," Sustainability, MDPI, vol. 8(2), pages 1-11, February.
    10. Odolinski, Kristofer & Pyddoke, Roger, 2019. "Price elasticities of demand for (garage) parking in Stockholm," Working papers in Transport Economics 2019:2, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    11. Yating Zhu & Xiaofei Ye & Jun Chen & Xingchen Yan & Tao Wang, 2020. "Impact of Cruising for Parking on Travel Time of Traffic Flow," Sustainability, MDPI, vol. 12(8), pages 1-17, April.
    12. Ardeshiri, Ali & Safarighouzhdi, Farshid & Hossein Rashidi, Taha, 2021. "Measuring willingness to pay for shared parking," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 186-202.
    13. Zakharenko, Roman, 2016. "The time dimension of parking economics," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 211-228.
    14. Fan Wu & Wei Ma, 2022. "Clustering Analysis of the Spatio-Temporal On-Street Parking Occupancy Data: A Case Study in Hong Kong," Sustainability, MDPI, vol. 14(13), pages 1-25, June.
    15. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    16. Geroliminis, Nikolas, 2015. "Cruising-for-parking in congested cities with an MFD representation," Economics of Transportation, Elsevier, vol. 4(3), pages 156-165.
    17. Xinliu Sui & Xiaofei Ye & Tao Wang & Xingchen Yan & Jun Chen & Bin Ran, 2022. "Microscopic Simulating the Impact of Cruising for Parking on Traffic Efficiency and Emission with Parking-and-Visit Test Data," IJERPH, MDPI, vol. 19(15), pages 1-26, July.
    18. Ding, Heng & Qian, Yu & Zheng, Xiaoyan & Bai, Haijian & Wang, Shiguang & Zhou, Jingwen, 2022. "Dynamic parking charge–perimeter control coupled method for a congested road network based on the aggregation degree characteristics of parking generation distribution," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 587(C).

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    More about this item

    Keywords

    Parking; Curbside parking; Occupancy rate; Vacancy rate; Pricing;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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